-Refer to Table 6.10. If 1999 is the base year, then the inflation rate (i.e., the growth rate of the price index) between 2000 and 2001 is:
A) about 11 percent.
B) about 7 percent.
C) about 9 percent.
D) about 13 percent.

Question

-Refer to Table 6.10. If 1999 is the base year, then the inflation rate (i.e., the growth rate of the price index) between 2000 and 2001 is:
A) about 11 percent. 
B) about 7 percent. 
C) about 9 percent. 
D) about 13 percent.

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the price index from one year to the next. In this case, the price index increased from 100 in 2000 to 111 in 2001, a change of 11%.