The inflation rate measures
A)the annual change in the price level.
B)the annual percentage change in the price level.
C)the average price level.
D)the annual percentage change in the wage rate.
E)the annual percentage change in production.

Question

Quizplus · Accepted Answer

The inflation rate measures the percentage change in the price level over a period (usually a year). Therefore, option B, which states "the annual percentage change in the price level," is the correct answer. The other options refer to concepts that are not directly related to the inflation rate.

The Inflation Rate Measures