5. The table below shows the price index in the economy at the end of four different years. (a) What is the rate of inflation in years 2, 3, and 4? (b) Using the "rule of 70," how many years would it take for the prices to double at each of these three inflation rates? Rate of Year Price index inflation Years to double 100 108 120 1 3 4 132
5. The table below shows the price index in the economy at the end of four different years. (a) What is the rate of inflation in years 2, 3, and 4? (b) Using the "rule of 70," how many years would it take for the prices to double at each of these three inflation rates? Rate of Year Price index inflation Years to double 100 108 120 1 3 4 132
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The table below shows the
(a) What is the rate of inflation in years 2, 3, and 4?
(b) Using the “rule of 70,” how many years would it take for the prices to double at each of these three inflation rates?
![5. The table below shows the price index in the economy at the end of four different years.
(a) What is the rate of inflation in years 2, 3, and 4?
(b) Using the "rule of 70," how many years would it take for the prices to double at each of these three inflation
rates?
Rate of
Year
Price index
inflation
Years to double
100
108
120
132
-23 4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a147b0e-04b8-4472-8e61-178d462b9e3a%2Fc0e1fac0-2bf3-42b1-b09e-7c4e61c1043c%2Ff0evw9d_processed.png&w=3840&q=75)
Transcribed Image Text:5. The table below shows the price index in the economy at the end of four different years.
(a) What is the rate of inflation in years 2, 3, and 4?
(b) Using the "rule of 70," how many years would it take for the prices to double at each of these three inflation
rates?
Rate of
Year
Price index
inflation
Years to double
100
108
120
132
-23 4
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