The inflation rate is the
A)Monthly percentage rate increase in the price of all goods and services.
B)Annual percentage rate increase in tax brackets.
C)Annual percentage rate increase in the average price level.
D)Monthly adjustment of wages to the cost of living.

Question

Quizplus · Accepted Answer

The inflation rate is the annual percentage rate increase in the average price level of goods and services in an economy. Option A is incorrect because it refers to monthly inflation rate rather than the annual rate. Option B is also incorrect because it refers to tax brackets and not the average price level. Option D is incorrect because it refers to cost of living adjustment which is one way of addressing inflation, not the inflation rate itself.

The Inflation Rate Is the