2014 236.7 ??? 2015 237.0 ??? 2016 240.0 ??? 2017 245.1 ??? a) Calculate the inflation rates for the years 2014-2017. b) Was there disinflation in those years? If so, in which year(s)?
2014 236.7 ??? 2015 237.0 ??? 2016 240.0 ??? 2017 245.1 ??? a) Calculate the inflation rates for the years 2014-2017. b) Was there disinflation in those years? If so, in which year(s)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Practice Pack
![### Consumer Price Index and Inflation Rates
The table below presents the Consumer Price Index (CPI) for various years, along with calculated inflation rates for a subset of those years.
| Year | CPI | Infl. Rate |
|------|------|------------|
| 2010 | 218.1 | - |
| 2011 | 224.9 | 3.1% |
| 2012 | 229.6 | 2.1% |
| 2013 | 233.0 | 1.5% |
| 2014 | 236.7 | ??? |
| 2015 | 237.0 | ??? |
| 2016 | 240.0 | ??? |
| 2017 | 245.1 | ??? |
**Tasks:**
a) Calculate the inflation rates for the years 2014-2017.
b) Was there disinflation in those years? If so, in which year(s)?
**Guidance:**
To calculate the inflation rate for a given year, use the formula:
\[
\text{Inflation Rate} = \frac{\text{CPI in current year} - \text{CPI in previous year}}{\text{CPI in previous year}} \times 100
\]
Check if there is any disinflation (a decrease in the rate of inflation) by comparing the calculated inflation rates for each consecutive year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0c12b0d1-7ded-4bb5-9f1d-3bec03db509e%2F4f3d6d28-1d84-40a7-bcec-191992e1eddd%2Fnsl82x9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Consumer Price Index and Inflation Rates
The table below presents the Consumer Price Index (CPI) for various years, along with calculated inflation rates for a subset of those years.
| Year | CPI | Infl. Rate |
|------|------|------------|
| 2010 | 218.1 | - |
| 2011 | 224.9 | 3.1% |
| 2012 | 229.6 | 2.1% |
| 2013 | 233.0 | 1.5% |
| 2014 | 236.7 | ??? |
| 2015 | 237.0 | ??? |
| 2016 | 240.0 | ??? |
| 2017 | 245.1 | ??? |
**Tasks:**
a) Calculate the inflation rates for the years 2014-2017.
b) Was there disinflation in those years? If so, in which year(s)?
**Guidance:**
To calculate the inflation rate for a given year, use the formula:
\[
\text{Inflation Rate} = \frac{\text{CPI in current year} - \text{CPI in previous year}}{\text{CPI in previous year}} \times 100
\]
Check if there is any disinflation (a decrease in the rate of inflation) by comparing the calculated inflation rates for each consecutive year.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Includes step-by-step video
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education