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

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

Quizplus · Accepted Answer

To find this year's price level, multiply last year's price level by 1 plus the inflation rate: 120 * 1.05 = 126.

Last Yearʹs Price Level Was 120 and Since Then There