If 2009 is the base year and the inflation rate between 2009 and 2010 is -4.5, the price index in 2010 isO A) 104.5O B) 95.5C )Cannot be determined from this information because the index in the base year is not givenD)-145

Given In base Year CPI always a 100 so the CPI in 2009 is 100and the Inflation rate is -4.5

If 2009 is the base year and the inflation rate between 2009 and 2010 is -4.5, the price index in 2010 Is A) 104.5 O B) 95.5 C )Cannot be determined from this information because the index in the base year is not given D)-145

If 2009 is the base year and the inflation rate between 2009 and 2010 is -4.5, the price index in 2010 Is A) 104.5 O B) 95.5 C )Cannot be determined from this information because the index in the base year is not given D)-145

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

If 2009 is the base year and the inflation rate between 2009 and 2010 is -4.5, the price index in 2010 is
O A) 104.5
O B) 95.5
C )Cannot be determined from this information because the index in the base year is not given
D)-145

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