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In: Economics

the total expenditure on a basket of goods and services for year one was 20,000 and...

the total expenditure on a basket of goods and services for year one was 20,000 and for two was 20,400. Use this information to calculate the percentage rate of inflation rate for Years 2.



Solutions

Expert Solution

Rate of inflation for year 2 = 20%

(Rate of inflation = (expenditure on market basket in year 2- expenditure on market basket in year / expenditure on market basket in year 1)*100

=(2000-2400/20000)*100

=400/20000*100

= 2%)

Rahul Sunny answered 2 years ago
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