Question

.In this exercise, we see the cumulative effects of inflation. Refer to the CPI table. Find the four-year inflation rate from December 1973 to December 1977. (Round your answer to one decimal place.)

_______%

Answer 1

Explanation:

"To find the four-year inflation rate from December 1973 to December 1977, you can use the formula:

Inflation rate = ((CPI in 1977 - CPI in 1973) / CPI in 1973) x 100%

From the CPI table, we can see that the CPI in December 1973 was 146.4, and the CPI in December 1977 was 207.9. So, the inflation rate is:

((207.9 - 146.4) / 146.4) x 100% = 41.9%

Therefore, the four-year inflation rate from December 1973 to December 1977 is 41.9%. Does that help?"