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Instructions round your answer to two decimal places in

If the CPI was 110 last year and is 116 this year, what is this year's rate of inflation?

Instructions: Round your answer to two decimal places. %

In contrast, suppose that the CPI was 110 last year and is 105 this year. What is this year's rate of inflation?

Instructions: Round your answer to two decimal places. %

What term do economists use to describe this second outcome? Inflation/deflation

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