### Calculating Inflation Rates for Each PeriodThe table below shows the index numbers for the cost of a basket of goods and services in each period. Use this information to calculate the inflation rate for each period. Round to two decimal places.| Period | Index Number | Inflation Rate ||----------|--------------|------------------|| Period 1 | 112 | - || Period 2 | 120 | || Period 3 | 124 | || Period 4 | 130 | |Provide your answer below:Period 2 = [ ]%; Period 3 = [ ]%; Period 4 = [ ]%---### Instructions:1. The **Index Number** represents the price index for each period.2. To calculate the **Inflation Rate** for a given period, use the formula:\[\text{Inflation Rate} = \left( \frac{\text{Index Number in Current Period} - \text{Index Number in Previous Period}}{\text{Index Number in Previous Period}} \right) \times 100\]3. **Period 1** does not have an inflation rate provided as it is the base period.4. Calculate the inflation rate for **Period 2**, **Period 3**, and **Period 4** and fill in the answers in the provided boxes.### Example Calculation:For **Period 2** calculation:\[\text{Inflation Rate for Period 2} = \left( \frac{120 - 112}{112} \right) \times 100 \approx 7.14\%\]Make sure to apply the same formula to calculate the inflation rates for Period 3 and Period 4. Once calculated, insert the results into the spaces provided.

Inflation rate is the rate at which the price level increases over the period of time. Inflation…

The table below shows the index numbers for the cost of a basket of goods and services in each period. Use this information to calculate the inflation rate for each period. Round to two decimal places. Period 1 Period 2 Period 3 Period 4 Index Number 112 120 124 130 Provide your answer below: Inflation Rate Period 2 = %; Period 3 = %; Period 4 =

The table below shows the index numbers for the cost of a basket of goods and services in each period. Use this information to calculate the inflation rate for each period. Round to two decimal places. Period 1 Period 2 Period 3 Period 4 Index Number 112 120 124 130 Provide your answer below: Inflation Rate Period 2 = %; Period 3 = %; Period 4 =

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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