5. Cruzville economists have been using 2013 as their base year to calculate inflation. a) What is the CPI during the base year
1 answer:
Based on the base year used by Cruzville economists to calculate inflation, the following at the CPIs:
- 2013 = 100
- 2014 = 112
- 2015 = 130
As 2013 is the base year, the CPI will be 100 because all base years are 100 for CPI purposes.
The CPI in 2014 is:
= 112
This is due to an inflation rate of 12%.
An inflation rate of 16.1% is the reason why the CPI in 2015 is 130.
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