Asked by caglar gokbulut on May 28, 2024
Verified
The inflation rate for 2007 is computed by dividing (the CPI in 2007 minus the CPI in 2006) by the CPI in 2006, then multiplying by 100.
Inflation Rate
The rate expressed as a percentage at which the average price level of goods and services increases, leading to a decrease in purchasing power.
CPI
A rephrased definition for Consumer Price Index, which tracks changes in the price level of a market basket of consumer goods and services purchased by households.
Dividing
The arithmetic operation of distributing a quantity into equal parts or groups.
- Acquire knowledge on calculating inflation rates by utilizing data from the Consumer Price Index.
Verified Answer
MM
muzakkir mohiuddinMay 31, 2024
Final Answer :
True
Explanation :
This formula correctly calculates the inflation rate for 2007 by comparing the Consumer Price Index (CPI) of 2007 to that of 2006, showing the percentage change in prices from one year to the next.
Learning Objectives
- Acquire knowledge on calculating inflation rates by utilizing data from the Consumer Price Index.