Figure 24-4
-Refer to Figure 24-4. Given the economy is at point A in year 1, what is the inflation rate between year 1 and year 2?
A) 0.9%
B) 1.8%
C) 2.7%
D) 3.0%

Question

Figure 24-4 
-Refer to Figure 24-4. Given the economy is at point A in year 1, what is the inflation rate between year 1 and year 2?
A) 0.9% 
B) 1.8% 
C) 2.7% 
D) 3.0%

Quizplus · Accepted Answer

The inflation rate is calculated by the percentage change in the price level from year 1 to year 2. If the economy is at point A in year 1, and the price level increases by 1.8% to year 2, then the inflation rate is 1.8%.

Figure 24-4 -Refer to Figure 24-4. Given the Economy Is at Point