The following table shows the price of a specific stereo receiver for a five-year period. o Using year 3 as the base year, calculate the price index for each year. o What is the accumulated rate of inflation from year 1 to year 4? o What is the most recent annual rate of inflation? Year. Price. Price index 1 $ 88 2 $100 3 $120 4 $132 5 $140
The following table shows the price of a specific stereo receiver for a five-year period. o Using year 3 as the base year, calculate the price index for each year. o What is the accumulated rate of inflation from year 1 to year 4? o What is the most recent annual rate of inflation? Year. Price. Price index 1 $ 88 2 $100 3 $120 4 $132 5 $140
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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• The following table shows the
o Using year 3 as the base year, calculate the price index for each year.
o What is the accumulated rate of inflation from year 1 to year 4?
o What is the most recent annual rate of inflation?
Year. Price. Price index
1 $ 88
2 $100
3 $120
4 $132
5 $140
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