The price index was 140 in one year and 148.4in the next year. What was the inflation rate?8.4 percentO 6.0 percentO 2.4 percentO 4.2 percent Suppose a basket of goods and services hasbeen selected to calculate the CPI and 2016has been selected as the base year. In 2014,the basket's cost was $50; in 2016, the basket'scost was $52; and in 2018, the basket's costwas $58. The value of the CPI in 2018 wasO 106.0O 104.0O 111.5O 116.0

Inflation is the consistent rise in general price level over period of time . And inflation reduce…

Answered: The price index was 140 in one year and…

The price index was 140 in one year and 148.4 in the next year. What was the inflation rate? 8.4 percent 6.0 percent O 2.4 percent O 4.2 percent

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

The price index was 140 in one year and 148.4
in the next year. What was the inflation rate?
8.4 percent
O 6.0 percent
O 2.4 percent
O 4.2 percent

Suppose a basket of goods and services has
been selected to calculate the CPI and 2016
has been selected as the base year. In 2014,
the basket's cost was $50; in 2016, the basket's
cost was $52; and in 2018, the basket's cost
was $58. The value of the CPI in 2018 was
O 106.0
O 104.0
O 111.5
O 116.0

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