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If prices decreased by 7 percent between 2002 and 2008, and the CPI was 196 in...

If prices decreased by 7 percent between 2002 and 2008, and the CPI was 196 in 2008; what would you say the CPI was in 2002? Need step by step solution for better understand please

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Expert Solution

Inflation= (cpi↓²⁰⁰⁸-cpi↓²⁰⁰²)÷cpi↓²⁰⁰²

-7%=(cpi↓²⁰⁰⁸-196)÷196

=(-0.07×196) + 196

CPI↓²⁰⁰⁸ =196-13.72

=182.28

jeff jeffy answered 2 years ago
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