2) Measuring Inflation-35 points Using the Vulcan CPI information in Table 2, calculate the inflation rate for each year, only if possible. (Show all work in context.) Table 2 1810 1811 1812 1813 1814 1815 CPI 178.402 192.709 206.803 209.553 212.593 216.694 |(1776=100)
2) Measuring Inflation-35 points Using the Vulcan CPI information in Table 2, calculate the inflation rate for each year, only if possible. (Show all work in context.) Table 2 1810 1811 1812 1813 1814 1815 CPI 178.402 192.709 206.803 209.553 212.593 216.694 |(1776=100)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![**Measuring Inflation—35 Points**
Using the Vulcan CPI information in Table 2, calculate the inflation rate for each year, only if possible. (Show all work in context.)
**Table 2**
| Year | 1810 | 1811 | 1812 | 1813 | 1814 | 1815 |
|------|--------|--------|--------|--------|--------|--------|
| CPI | 178.402| 192.709| 206.803| 209.553| 212.593| 216.694|
The table provides the Consumer Price Index (CPI) for each year from 1810 to 1815, starting with a base year index of 1776 = 100. The CPI values reflect the change in price levels over these years.
To calculate the inflation rate for each year, use the formula:
\[
\text{Inflation Rate} = \left( \frac{\text{CPI in Current Year} - \text{CPI in Previous Year}}{\text{CPI in Previous Year}} \right) \times 100
\]
Apply this formula for each year to determine the inflation rates.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee261df3-69e4-4589-a869-47dfb745e25a%2F5766b612-a10f-4b58-a2db-233c0859b7a4%2Fhfc3sd_processed.png&w=3840&q=75)
Transcribed Image Text:**Measuring Inflation—35 Points**
Using the Vulcan CPI information in Table 2, calculate the inflation rate for each year, only if possible. (Show all work in context.)
**Table 2**
| Year | 1810 | 1811 | 1812 | 1813 | 1814 | 1815 |
|------|--------|--------|--------|--------|--------|--------|
| CPI | 178.402| 192.709| 206.803| 209.553| 212.593| 216.694|
The table provides the Consumer Price Index (CPI) for each year from 1810 to 1815, starting with a base year index of 1776 = 100. The CPI values reflect the change in price levels over these years.
To calculate the inflation rate for each year, use the formula:
\[
\text{Inflation Rate} = \left( \frac{\text{CPI in Current Year} - \text{CPI in Previous Year}}{\text{CPI in Previous Year}} \right) \times 100
\]
Apply this formula for each year to determine the inflation rates.
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