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)?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
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.
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
video

Learn your way

Includes step-by-step video

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Health Insurance
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
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)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
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-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education