If the price level was 100 in 2014 and 102 in 2015,the inflation rate was
A)102%.
B)20%.
C)2%.
D)0)2%.

Name: If the price level was 100 in 2014 and 102 in 2015,the inflation rate was A)102%. B)20%. C)2%. D)0)2%.
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Question

Quizplus · Accepted Answer

The inflation rate can be calculated using the formula:

Inflation rate = ((new price level - old price level) / old price level) x 100%

Substituting the given values, 
Inflation rate = ((102-100)/100) x 100%
= (2/100) x 100%
= 2%
Therefore, the inflation rate was 2%.

If the Price Level Was 100 in 2014 and 102