Use the following table to answer the question. The table shows the prices and the quantities consumed in Vegetarian Country. Suppose the base year is 2020. Also, suppose that 2020 is the year the typical consumption basket was determined, so the quantities consumed in 2020 are the only quantities needed to calculate the CPI in each year. Year Price of Carrots $2.00 2.50 2.75 Quantity of Price of Celery Carrots 100 90 105 2020 2021 2022 What is the inflation rate for 2021? Oa. 0 percent Ob. 9.2 percent c. 11 percent Od. 13.3 percent Oe. None of the answer choices are correct. $1.00 0.90 1.00 Quantity of Celery 100 120 130

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Chapter11: Measuring The Cost Of Living
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Use the following table to answer the question. The table shows the prices and the quantities consumed in Vegetarian Country. Suppose the base year is 2020. Also, suppose that
2020 is the year the typical consumption basket was determined, so the quantities consumed in 2020 are the only quantities needed to calculate the CPI in each year.
Year
Price of Celery
Price of
Carrots
$2.00
2.50
2.75
Quantity of
Carrots
100
90
105
2020
2021
2022
What is the inflation rate for 2021?
a. 0 percent
b. 9.2 percent
c. 11 percent
d. 13.3 percent
e. None of the answer choices are correct.
$1.00
0.90
1.00
Quantity of
Celery
100
120
130
Transcribed Image Text:Use the following table to answer the question. The table shows the prices and the quantities consumed in Vegetarian Country. Suppose the base year is 2020. Also, suppose that 2020 is the year the typical consumption basket was determined, so the quantities consumed in 2020 are the only quantities needed to calculate the CPI in each year. Year Price of Celery Price of Carrots $2.00 2.50 2.75 Quantity of Carrots 100 90 105 2020 2021 2022 What is the inflation rate for 2021? a. 0 percent b. 9.2 percent c. 11 percent d. 13.3 percent e. None of the answer choices are correct. $1.00 0.90 1.00 Quantity of Celery 100 120 130
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Inflation rate refers to a rise in prices over specified period of time. Thus informs on the overall rise in prices or the rise in the cost of living in a nation

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