If last year's price level was 100 and this year's price level is 114, over the year the inflation rate has been
A) 14 percent.
B) 114 percent.
C) 12 percent
D) 100 percent.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage increase in the price level from one year to the next. In this case, the price level increased from 100 to 114, which is a 14% increase.

If Last Year's Price Level Was 100 and This Year's