If this year's price level is 126 and last year's price level was 120, the inflation rate is ________.
A)1.05 per cent a year
B)5 per cent a year
C)6 per cent a year
D)0.95 per cent a year

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the price level from one year to the next. In this case, the inflation rate is (126 - 120) / 120 * 100 = 5%.

If This Year's Price Level Is 126 and Last Year's