Question

4303 0:02/3:21 1x co 1:34 West Trendia has computed its CPI for three years, using 2016 as the base year. Instructions: Round your answers to one decimal place. 2015 2016 2017 CPI 97 100 96 What was the rate of inflation between 2015 and 2016? percent b. Between 2016 and 2017? percent C. Between 2015 and 2017? percent GE < Prev 3 4 of 6 Nex < # 2 3 $ 4. % 5 6 & 7 8 W E

Answer 1

Answer :-

Rate of inflation = current year cpi - base previous year cpi / previous year cpi *100

(A) between 2015 and 2016

Rate of inflation = 2016 CPI - 2015 CPI / 2015 CPI *100

= 100-97/97 *100

= 3 / 97 *100

= 3.0%

(B) Inflation between 2016 and 2017

Inflation = 96 -100 / 100 *100

= -4 / 100 *100

= -4% (Deflation)

(C) between 2015 and 2017

Inflation = 96 - 97 / 97 *100

= -1 / 97 *100

= -1.0% (deflation)