Question

Use some of the information below to calculate an economy's 2022-2023 Inflation rate. January 2022 Number of employed: 150 million

January 2023 Number of employed: 153 million January 2022 Number of unemployed: 10 million
January 2023 Number of unemployed: 11 million January 2022 Consumer Price Index: 101
January 2023 Consumer Price Index 111
2022 Nominal GDP: $200 billion 2023 Nominal GDP: $205 billion
2022 Real GDP: $187 billion
2023 Real GDP: $197 billion
A. 3.5%
B. 47.6%
C. 11.2%
D. 9.9%
E. 2.0%

Answer 1

To calculate the economy's inflation rate for 2022-2023, use the formula: Inflation Rate (%) = ((Consumer Price Index 2023 - Consumer Price Index 2022) / Consumer Price Index 2022) * 100. Using the provided data, the inflation rate is 9.9%.

Step-by-step explanation:

To calculate the economy's inflation rate for 2022-2023, we will use the formula:

Inflation Rate (%) = ((Consumer Price Index 2023 - Consumer Price Index 2022) / Consumer Price Index 2022) * 100

Using the provided data, the calculation is as follows:

Inflation Rate (%) = ((111 - 101) / 101) * 100 = 9.9%

Therefore, the correct answer is D. 9.9%.