3. From the data in the table, calculate the average annual inflation rate as measured by the CPI for the following years: (a) End of 1970 to end of 1982 (b) End of 1980 to end of 1989 (c) End of 2000 to end of 2017 CPI Index Values and Yearly Percentage Increases, 1955-2017 Year CPI Value* 1955 26.8 1960 29.6 1965 31.5 1970 38.8 1975 53.8 1976 56.9 1977 60.6 1978 65.2 1979 72.6 1980 82.4 1981 90.9 1982 96.5 1983 99.6 1984 103.9 1985 107.6 1986 109.6 1987 113.6 1988 118.3 1989 124.0 1990 130.7 1991 136.2 1992 140.3 1993 144.5 CPI Increase 9.1% 5.8 6.5 7.6 11.3 13.5 10.3 6.2 3.2 4.3 3.6 1.9 3.6 4.1 4.8 5.4 4.2 3.0 3.0 Year CPI Value* 1994 148.2 1995 152.4 1996 156.9 1997 160.5 1998 163.0 1999 166.6 2000 172.2 2001 177.1 2002 179.9 2003 184.0 2004 188.9 2005 195.3 2006 201.6 2007 207.3 2008 215.3 2009 214.5 2010 218.1 2011 224.9 2012 229.6 2013 233.0 2014 236.7 2015 237.0 2016 240.0 2017 245.1 CPI Increase 2.6% 2.8 2.9 2.3 1.6 2.2 3.4 2.8 1.6 2.3 2.7 3.4 3.2 2.8 3.8 -0.4 1.6 3.2 2.1 1.5 1.6 0.1 1.3 2.1

3. From the data in the table, calculate the average annual inflation rate as measured by the CPI for the following years: (a) End of 1970 to end of 1982 (b) End of 1980 to end of 1989 (c) End of 2000 to end of 2017 CPI Index Values and Yearly Percentage Increases, 1955-2017 Year CPI Value* 1955 26.8 1960 29.6 1965 31.5 1970 38.8 1975 53.8 1976 56.9 1977 60.6 1978 65.2 1979 72.6 1980 82.4 1981 90.9 1982 96.5 1983 99.6 1984 103.9 1985 107.6 1986 109.6 1987 113.6 1988 118.3 1989 124.0 1990 130.7 1991 136.2 1992 140.3 1993 144.5 CPI Increase 9.1% 5.8 6.5 7.6 11.3 13.5 10.3 6.2 3.2 4.3 3.6 1.9 3.6 4.1 4.8 5.4 4.2 3.0 3.0 Year CPI Value* 1994 148.2 1995 152.4 1996 156.9 1997 160.5 1998 163.0 1999 166.6 2000 172.2 2001 177.1 2002 179.9 2003 184.0 2004 188.9 2005 195.3 2006 201.6 2007 207.3 2008 215.3 2009 214.5 2010 218.1 2011 224.9 2012 229.6 2013 233.0 2014 236.7 2015 237.0 2016 240.0 2017 245.1 CPI Increase 2.6% 2.8 2.9 2.3 1.6 2.2 3.4 2.8 1.6 2.3 2.7 3.4 3.2 2.8 3.8 -0.4 1.6 3.2 2.1 1.5 1.6 0.1 1.3 2.1

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 35P: With in 1 or 2 percentage points, what has the U.S. inflation rate been during the last 20 years?...

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