If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $11,000 to purchase those identical goods in 2015, then the inflation rate from 2014 to 2015 is

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage increase in the price level from one year to another. 
In this case, we can calculate the inflation rate as follows: 
Inflation rate = ((Price level in Year 2 - Price level in Year 1)/Price level in Year 1)*100 
= (($11,000 - $10,000)/$10,000)*100 
= (1,000/10,000)*100 
= 10%. 
Therefore, the correct answer is C.

If a Market Basket Was Defined in 2014 and It