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In the country of Bahrain, the CPI is calculated using a market basket consisting of 2 apples, 2 loaves of bread, 1 robe and 1
In the country of Bahrain, the CPI is calculated using a market basket consisting of 2 apples, 2 loaves of bread, 1 robe and 1 gallon of gasoline. The per-unit prices are as follows:
Year Apples Bread Robes Gasoline
1999 $1.00 $1.50 $9.00 $1.00
2000 $1.00 $2.00 $10.00 $4.00
2001 $2.00 $2.00 $11.00 $2.00
2002 $3.00 $3.00 $15.00 $2.50
What was the inflation rate, as measured by the CPI, between 1999 and 2000_____?
- 33%
- It is impossible to determine without knowing the base year.
- 66%
- 10%
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