Questions
2254 ECON 0110 SEC1300 Test 2
Single choice
The price index was 120 in Year 1 and 126 in Year 2. What was the inflation rate?
Options
A.105 percent
B.5.0 percent
C.6.0 percent
D.7.2 percent
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Step-by-Step Analysis
To begin, identify the price indices for the two years: Year 1 = 120 and Year 2 = 126. The inflation rate measures how much prices have increased from Year 1 to Year 2.
Option A: 105 percent. This would imply the price level......Login to view full explanationLog in for full answers
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