Quick economics question?
If the CPI rises in one year from 220 to 230, the inflation rate is 10 percent.
True or False?
If the CPI rises in one year from 220 to 230, the inflation rate is 10 percent.
True or False?
Hot Steppa
Favorite Answer
False
To find the percetage first find the difference. 230 - 220 = 10
the divded the difference by the intial CPI 10/220 = 0.0454545454545
answer is 4.54% inflation
versi7
False, its actually 5% (just do 220/230 which shows 220 is 95% of 230)
Read
False. The price level has only gone up by less than 5% (10 divided by 220).