If the price level doubles in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent.

Question

Quizplus · Accepted Answer

If the price level doubles in a 23-year period, this is equivalent to an average annual inflation rate of approximately 3.03% (calculated using the rule of 72). Therefore, we can conclude that the average annual rate of inflation over that period was about 3 percent, making statement A true.

If the Price Level Doubles in a 23-Year Period, We