Economic Performance Unit Test

Question

9 of 189 of 18 Items

Question
The CPI of a country in October is given to be 210. In November, the CPI rises to 220. What is the rate of inflation from October to November? Round your answer to the nearest tenth of a percent if necessary.(1 point)
Responses

4.8%
4.8 percent

4.5%
4.5 percent

10.0%
10.0 percent

1.0%
1.0 percent

Answer 1

To calculate the rate of inflation, you can use the following formula:

\[ \text{Inflation Rate} = \left( \frac{\text{CPI in November} - \text{CPI in October}}{\text{CPI in October}} \right) \times 100 \]

Substituting the given values:

\[ \text{Inflation Rate} = \left( \frac{220 - 210}{210} \right) \times 100 \]

\[ \text{Inflation Rate} = \left( \frac{10}{210} \right) \times 100 \]

\[ \text{Inflation Rate} \approx 4.76% \]

When rounded to the nearest tenth of a percent, this results in 4.8%.

So, the correct response is 4.8%.