If the price level in the year 2000 is 100, and the price level in the year 2001 is 110, what is the inflation rate in 2001?
A) 100%
B) 110%
C) 10%
D) 9%

Name: If the price level in the year 2000 is 100, and the price level in the year 2001 is 110, what is the inflation rate in 2001? A) 100% B) 110% C) 10% D) 9%
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Question

Quizplus · Accepted Answer

The inflation rate can be calculated by taking the difference in the price levels (110-100=10) and dividing by the original price level (10/100=0.1 or 10%). Therefore, the correct answer is C.

If the Price Level in the Year 2000 Is 100