Given cpi in 2006 1600 cpi in 2007 1705 cpi in 2008 1724, Business Economics

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Given cpi in 2006 1600 cpi in 2007 1705 cpi in 2008 1724

Given: CPI in 2006 = 160.0; CPI in 2007 = 170.5; CPI in 2008 = 172.4; CPI in 2009 = 168.2

a. Compute the inflation rate in 2007, in 2008, and in 2009.

b. Based on the given data and your computations above, we can say that deflation occurred in 2008: true or false? Explain.

c. Based on the given data and your computations above, in which year did disinflation occur?

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Business Economics: Given cpi in 2006 1600 cpi in 2007 1705 cpi in 2008 1724

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Business Economics: Given cpi in 2006 1600 cpi in 2007 1705 cpi in 2008 1724

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