Question 11Given the following numbers for this economy.What is the average annual inflation rate between base year and year 4 as per the CPI method?Base yearYear + 5Year + 4BasketQuantitiesPricePricePriceProduct A1220250290Product B707585Product C20151514Product D20303133Product E10055.25.34.44%(B) 18.44%c) 1.11%(D) 9.17%E) 4.53%O © © © ©

"Inflation represents the increase in the price levels over a given period of time."

Question 11 Siven the following numbers for this economy. What is the average annual inflation rate between base year and year 4 as per the CPI method? Base year Year +4 Year + 5 Basket Quantities Price Price Price Product A 220 250 290 Product B 70 75 85 Product C 20 15 15 14 Product D 20 30 31 33 Product E 100 5.2 5.3 4.44% B 18.44% c) 1.11% D) 9.17% e 4.53% O O O O

Question 11 Siven the following numbers for this economy. What is the average annual inflation rate between base year and year 4 as per the CPI method? Base year Year +4 Year + 5 Basket Quantities Price Price Price Product A 220 250 290 Product B 70 75 85 Product C 20 15 15 14 Product D 20 30 31 33 Product E 100 5.2 5.3 4.44% B 18.44% c) 1.11% D) 9.17% e 4.53% O O O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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