If last year's price level was 100 and this year's price level is 114, over the year the inflation rate has been
A) 100 percent.
B) 114 percent.
C) 14 percent.
D) 12 percent

Question

Quizplus · Accepted Answer

The inflation rate can be calculated using the formula: (Current year's price level - Last year's price level) / Last year's price level x 100. Applying the formula, we get: (114-100)/100 x 100 = 14 percent. Therefore, the correct answer is choice C: 14 percent.

If Last Year's Price Level Was 100 and This Year's