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wtfmate08
wtfmate08 asked in Social ScienceEconomics · 1 decade ago

Quick economics question?

If the CPI rises in one year from 220 to 230, the inflation rate is 10 percent.

True or False?

3 Answers

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  • Hot Steppa
    1 decade ago
    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

    Source(s): http://www.seattle.gov/financedepartment/cpi/overv...
  • versi7
    Lv 4
    1 decade ago

    False, its actually 5% (just do 220/230 which shows 220 is 95% of 230)

  • Read
    1 decade ago

    False. The price level has only gone up by less than 5% (10 divided by 220).

    Source(s): self knowledge
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