Multiple Choice
Use the table below to answer the following questions.
Table 6-2
-The market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 litres of milk, 2 shirts, and 2 pairs of pants. In 2005 the price of bread was $1.00 per loaf, the price of milk was $1.50 per litre, the price of a shirt was $6.00, and the price of a pair of pants was $10.00. In 2006 the price of bread was $1.75 per loaf, the price of milk was $2.25 per litre, the price of a shirt was $7.50, and the price of a pair of pants was $13.00. What was the inflation rate, as measured by the CPI, for Aquilonia between 2005 and 2006?
A) 20 percent
B) 24.4 percent
C) 30 percent
D) 36.67 percent
Correct Answer:

Verified
Correct Answer:
Verified
Q83: The Canadian income tax system is indexed
Q106: Which of the following best describes the
Q109: If the cost of shelter increases by
Q110: Scenario 6-1<br>Grant Smith was a doctor in
Q112: In 1969 Don bought a Dodge Dart
Q114: The price index in the first year
Q115: If the nominal interest rate is 5
Q116: Which of the following best explains whether
Q166: If this year the CPI is 125
Q169: What does the GDP deflator reflect?<br>A) the