If the Consumers Price Index in March 2016 was 1,125 and it was 1,154 in March 2017,this indicates that real GDP grew more quickly than nominal GDP in the year to March 2017.the inflation rate between these years was 2.6% (to 1 d.p.).on average, consumer prices did not change.the economy experienced deflation (on an annual basis).

Inflation rate is calculated by the percentage change in CPI.

Answered: If the Consumers Price Index in March…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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