Solutions Economics

For the consumer price index values shown, calculate the rate of inflation in each year form 1930 to

Question: For the consumer price index values shown, calculate the rate of inflation in each year form 1930 to 1933. What is unusual about this period, relative to recent experience?

Year 1929 1930 1931 1932 1933

CPI 51.3 50.0 456 40.9 38.8

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