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The Table Below Shows the Price Index in the Economy

Question 26

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The table below shows the price index in the economy at the end of four different years. The table below shows the price index in the economy at the end of four different years. (a) What is the rate of inflation in years 2, 3, and 4? (b) Using the rule of 70, determine how many years would it take for the prices to double at each of these three inflation rates? (a) What is the rate of inflation in years 2, 3, and 4?
(b) Using the "rule of 70," determine how many years would it take for the prices to double at each of these three inflation rates?
The table below shows the price index in the economy at the end of four different years. (a) What is the rate of inflation in years 2, 3, and 4? (b) Using the rule of 70, determine how many years would it take for the prices to double at each of these three inflation rates?

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(a) Inflation is 8% [(108 - 100)/100 *10...

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