The Consumer Price Index Is 132 in 2004 and 112

question 86

Multiple Choice

The consumer price index is 132 in 2004 and 112 in 2003 when the base year is 1997.The 2004 annual inflation rate,using 2003 as a base year,is

• A)17.8 percent.
• B)20 percent.
• C)12 percent.
• D)unknown,as there is not sufficient information.

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Definitions:

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased in percentage terms from the original figure.

Horizontal Analysis

Comparative financial analysis technique that views financial data over multiple periods to identify trends and growth patterns.

Balance Sheet

A summary statement of a firm's assets, liabilities, and equity held by shareholders, reflecting its financial position at a specific moment.

Percentage Increase

Percentage increase is calculating the extent of growth in a value over time, expressed as a proportion of the original value.