If the price level increased from 115 to 133, then what was the inflation rate?
A)1.2 percent
B)0.9 percent
C)15.7 percent
D)18.0 percent

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage increase in the price level. The formula to calculate the inflation rate is: [(New Price Level - Old Price Level) / Old Price Level] * 100. Using the given numbers: [(133 - 115) / 115] * 100 = 15.65, which rounds to 15.7 percent.

If the Price Level Increased from 115 to 133, Then