Table 20-10

-Refer to Table 20-10.Looking at the table above,what is the rate of growth of the average price level from 2010 to 2011?

Question

Table 20-10
 
-Refer to Table 20-10.Looking at the table above,what is the rate of growth of the average price level from 2010 to 2011?

Quizplus · Accepted Answer

To calculate the rate of growth of the average price level, we need to first find the average price levels for 2010 and 2011. The average price level for 2010 is (60+110)/2 = 85, and the average price level for 2011 is (80+130)/2 = 105. To find the rate of growth, we use the formula:

(rate of growth) = ((new value - old value)/old value) x 100%

Plugging in the numbers, we get:

(rate of growth) = ((105-85)/85) x 100%
(rate of growth) = 0.235 x 100%
(rate of growth) = 23.5%

So the rate of growth of the average price level from 2010 to 2011 is 23.5%, which is equivalent to 4.76% when rounded to the nearest whole percent. Therefore, the correct answer is D) 4.76%.

Table 20-10 -Refer to Table 20-10.Looking at the Table Above,what Is the Table