Compute inflation rate for each year 1989 - 2006 and determinewhich years were y

Question

Compute inflation rate for each year 1989 - 2006 and determinewhich years were years of inflation. In which years did deflationoccur? In which years did disinflation occur? was therehyperinflation in any year? Year                     CPI 1999                     166.6 2000                     172.2 2001                     177.1 2002                     179.9 2004                     188.9 2005                     195.3 2006                     201.8 Thanks for helping. Compute inflation rate for each year 1989 - 2006 and determinewhich years were years of inflation. In which years did deflationoccur? In which years did disinflation occur? was therehyperinflation in any year? Year                     CPI 1999                     166.6 2000                     172.2 2001                     177.1 2002                     179.9 2004                     188.9 2005                     195.3 2006                     201.8 Thanks for helping.

Explanation / Answer

Years    Inflation 99-00    (172.2 - 166.6) / 166.6 = 0.0336 00-01    (177.1 - 172.2) / 172.2 = 0.0285 01-02    0.0158 02-04    0.0500 (annualize to arrive at 0.0247 peryear from 02-03 and 03-04) 04-05    0.0339 05-06    0.0333 Inflation occurred every year, since the CPI increased every year,but there was neither any hyperinflation nor any disinflation.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.