Asked by jayden pineda on Jul 20, 2024
Verified
If the price level increased from 115 to 133, then what was the inflation rate?
A) 1.2 percent
B) 0.9 percent
C) 15.7 percent
D) 18.0 percent
Inflation Rate
The annual rate at which the cost of goods and services rises within an economy, reflecting a growth in price levels over time.
Price Level
An indicator of the mean cost of goods and services within an economy at a particular moment.
- Determine inflation rates and recognize their influence on the economic environment.
Verified Answer
WW
William WalterJul 23, 2024
Final Answer :
C
Explanation :
The inflation rate is calculated as the percentage increase in the price level. The formula to calculate the inflation rate is: [(New Price Level - Old Price Level) / Old Price Level] * 100. Using the given numbers: [(133 - 115) / 115] * 100 = 15.65, which rounds to 15.7 percent.
Learning Objectives
- Determine inflation rates and recognize their influence on the economic environment.