Answered: Assume the consumer price index (CPI)…

Assume the consumer price index (CPI) in 2018 was 95, in 2019 the CPI was 100, and in 2020 the CPI was 105. The annual inflation rate in 2020 is: Select one: a. -5% b. 10% c. 5%

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 3.7P

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Question

Assume the consumer price index (CPI) in 2018 was 95, in 2019 the CPI was 100, and in 2020 the CPI was 105. The annual inflation rate in 2020 is:

Select one:

-5%

10%

None of the other options are correct

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