If the price level in 2018 is 150 and it rises to 165 in 2019,what is the rate of inflation between 2018 and 2019?
A) 9%
B) 10%
C) 15%
D) 165%

Question

Quizplus · Accepted Answer

To calculate the rate of inflation, we can use the following formula:

Rate of inflation = ((Price level in current year - Price level in previous year) / Price level in previous year) x 100

Using the given values, we get:

Rate of inflation = ((165 - 150) / 150) x 100
Rate of inflation = (15 / 150) x 100
Rate of inflation = 0.1 x 100
Rate of inflation = 10%

Therefore, the rate of inflation between 2018 and 2019 is 10%, which is option B.

If the Price Level in 2018 Is 150 and It