1.) Suppose the CPI increases this year from208to218. What is the rate of inflation for this year? Round your answer to the nearest tenth of a percent.

Rate of inflation =

2.) Suppose the buying power of a dollar decreases by3% this year. What is the rate of inflation this year? Round your answer to the nearest tenth of a percent.

The percent rate of inflation =

3.) In this exercise, we see the cumulative effects of inflation. Refer to theCPI table.

Find thethree-year inflation rate from December1977to December1980. (Round your answer to one decimal place.)

%

4.) In this exercise we see the cumulative effects of inflation. Refer to theCPI table.

Consider the one-year inflation rate for each of the three years from December1980toDecember1983.Find the sum of these three numbers. (Round your answer to one decimal place.)

%

Is the sum the same as finding the three-year inflation rate from December1980toDecember1983?

A.) Yes, the sums are the same.

B.0 No, the sums are not the same.

5.) If prices increase2% each year for 10 years, then a jacket that costs $40today will cost $48.76in 10 years. What is the percentage decrease in the buying power of currency over the10-yearperiod? (Round your answer to one decimal place.)

%