Suppose that the consumer price index at year-end 2004 was 140 and by year-end 2005 had risen to 150. What was the inflation rate during 2005?

What will be an ideal response?


7.1 percent

Inflation = (new PI - old PI)/ (old PI)

Economics

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During recessions, consumers tend to purchase more durable goods, so that sales of new durables are relatively strong

Indicate whether the statement is true or false

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In June 2008, the dollar bought 1.6 Brazilian reals and in October, the dollar bought 2.4 reals. This resulted in a

A) a movement upward along the supply curve for dollars. B) a movement downward along the supply curve for dollars. C) rightward shift in the supply curve for dollars. D) leftward shift in the supply curve for dollars.

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Any bank that uses deposits to make loans: a. operates on a 100 percent reserve system

b. operates on a fractional reserve system. c. does not operate on a reserve system. d. does not keep reserves in its vaults. e. charges an interest rate determined by the reserve ratio.

Economics

The U.S. commercial airline industry is a good example of an oligopolistic market

a. True b. False Indicate whether the statement is true or false

Economics