If the CPI This Year Is 175

question 383

Essay

If the CPI this year is 175.2 and next year the CPI is 176.1, what was the inflation rate over the year?

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Definitions:

Marginal Utility

The additional satisfaction or benefit received from consuming one more unit of a good or service.

Perfect Substitutes

Items or services that can replace each other without any decrease in value or enjoyment for the user.

Utility per Dollar

A metric assessing the amount of utility or satisfaction a consumer receives per dollar spent on a good or service.

ADH

Antidiuretic Hormone, a hormone that helps to control the balance of water in the body by affecting the kidneys.