Question

question 17 · 1 point
the inflation rate for a given year can be found by ______.
select the correct answer below:
○ taking the percentage change in the consumer price index (cpi) from the previous year to the given year in question
○ calculating the absolute change in the consumer price index (cpi) from the previous year to the given year in question
○ taking the difference in the price levels as measured by the consumer price index (cpi) of the two years
○ none of the above
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question 18 · 1 point
suppose a country’s labor force is 152.7 million (of whom 139.8 million are employed). what is the country’s unemployment rate? round your answer to the nearest tenth.
provide your answer below:
unemployment rate = □%

Explanation:

Question 17

To determine the inflation rate, we use the percentage change in the Consumer Price Index (CPI) between two years. The inflation rate is a percentage change, not an absolute change or a simple difference in CPI levels. So the correct option is the one about taking the percentage change in CPI from the previous year to the given year.

Step1: Find the number of unemployed

The labor force is the sum of employed and unemployed. So unemployed = labor force - employed. That is $152.7 - 139.8 = 12.9$ million.

Step2: Calculate the unemployment rate

The formula for unemployment rate is $\frac{\text{unemployed}}{\text{labor force}} \times 100\%$. Substituting the values, we get $\frac{12.9}{152.7} \times 100\%$.

Step3: Compute the value

First, calculate $\frac{12.9}{152.7} \approx 0.0845$. Then multiply by 100% to get $0.0845\times 100\% = 8.45\%$, which rounds to 8.5% when rounded to the nearest tenth.

Answer:

A. taking the percentage change in the Consumer Price Index (CPI) from the previous year to the given year in question

Question 18