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1) the index number representing the price level changes from 110 to 115 in one year, and then from 115 to 120 the next year. since the index number increases by five each year, is five the inflation rate each year? is the inflation rate the same each year? explain your answer.

Respuesta :

tutorconsortium127

No. The inflation rate is the percentage change in the price index rather than the number of points changed. In the example, the first-year inflation rate is (115 - 110)/110 = 4.55%. The second-year inflation rate is (120 - 115)/115 = 4.35%.

What is inflation rate?

  • Inflation is defined as an increase in the price of goods and services purchased by households. The rate of change in those prices is used to calculate it.
  • Prices typically rise over time, but they can also fall (a situation called deflation). Consumer prices rose 9.1 percent in the fiscal year ending June 2022, the highest increase in 40 years: U.S.
  • Bureau of Labor Statistics: The Economics Daily According to U.S. Labor Department data published on October 13, the annual inflation rate in the United States is 8.2% for the 12 months ended September 2022, up from 8.3% previously.
  • The next inflation report is scheduled for November 10 at 8:30 a.m. ET.

To learn more about inflation rate, refer to:

https://brainly.com/question/777738

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