Answered: Suppose that the Consumer Price Index…

Suppose that the Consumer Price Index (CPI) at year end 2019 was 290 and 12 months later at year end 2020, the CPI was 306. What was the inflation rate during 2020?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 3.7P

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Question

17 . Critical analysis Q14

Suppose that the Consumer Price Index (CPI) at year end 2019 was 290 and 12 months later at year end 2020, the CPI was 306. What was the inflation rate during 2020?

The inflation rate in 2020 will be % . ( 6%, 1.06%, 16%, -6%)

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