Answered: In 2000, the CPI is equal to 110. The…

In 2000, the CPI is equal to 110. The annual inflation rate was equal to 5% per year for 2001 and 2002.What is the CPI in 2002? Question 10Answer a. 125 b. 115.5 c. 120 d. 121.275

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

In 2000, the CPI is equal to 110. The annual inflation rate was equal to 5% per year for 2001 and 2002.

What is the CPI in 2002?

Question 10Answer

125

115.5

120

121.275

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