If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?
A) 20 percent
B) 30 percent
C) 13.6 percent
D) 12.2 percent

Question

Quizplus · Accepted Answer

To calculate the inflation rate, we use the following formula:
Inflation Rate = ((Price level this year - Price level last year)/Price level last year) x 100

Substituting the values given:
Inflation Rate = ((250-220)/220) x 100
Inflation Rate = (30/220) x 100
Inflation Rate = 13.6%

Therefore, the inflation rate between the two years is 13.6 percent, which is option C.

If the Price Level Last Year Was 220 and This