Answered: Assume the consumer price index (CPI)…

Assume the consumer price index (CPI) in 2018 was 95, in 2019 the CPI was 100, and in 2020 the CPI was 105. The annual inflation rate in 2020 is: Select one: a. -5% b. 10% c. 5%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Assume the consumer price index (CPI) in 2018 was 95, in 2019 the CPI was 100, and in 2020 the CPI was 105. The annual inflation rate in 2020 is:

Select one:

-5%

10%

None of the other options are correct

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