Last year's price level was 120 and since then there has been a 5 percent inflation. This year's price level is
A) 126.
B) 125.
C) 130.
D) none of the above

Name: Last year's price level was 120 and since then there has been a 5 percent inflation. This year's price level is A) 126. B) 125. C) 130. D) none of the above
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Question

Quizplus · Accepted Answer

The price level increases by 5% from 120, which is calculated as 120 * 1.05 = 126.

Last Year's Price Level Was 120 and Since Then There