Since inflation, like interest, is compounded from period to period (e.g., year to year), estimate the overall annual inflation rate per year from 2013 to 2017. % Suggestion: Do not simply average the rates of

Since inflation, like interest, is compounded from period to period (e.g., year to year), estimate the overall annual inflation rate per year from 2013 to 2017. % Suggestion: Do not simply average the rates of

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

100%

Please answer quickly and correctly The CPI-U (U.S. city average, all items) has the following annual averages: Year 2013 2014 2015 2016 2017 Index 208.1 213.3 214.5 216.0 217.4

Since inflation, like interest, is compounded
from period to period (e.g., year to year),
estimate the overall annual inflation rate per
year from 2013 to 2017.
%
Suggestion: Do not simply average the rates of
Part a.
Carry all interim calculations to 5 decimal
places and then round your final answer to 2
decimal places. The tolerance is ±0.05.

Part a
For each year from 2014 to 2017, determine the
annual inflation rate in percent to two decimal
places.
Year
2014
2015
2016
Your answer is correct.
2017
Inflation Rate
2.50
0.56
0.70
0.65
%
%
do
%
%

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