$$\begin{array} { | c | c | }
\hline \text { Year } & \text { Price level } \
\hline 2008 & 91 \
\hline 2009 & 100 \
\hline 2010 & 110 \
\hline 2011 & 121 \
\hline
\end{array}$$
-In the above table,the inflation rate between 2008 and 2009 is approximately
A) 0.9 percent.
B) 1 percent.
C) 10 percent.
D) 100 percent.

Question

$$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Price level } \
\hline 2008 & 91 \
\hline 2009 & 100 \
\hline 2010 & 110 \
\hline 2011 & 121 \
\hline
\end{array}$$
-In the above table,the inflation rate between 2008 and 2009 is approximately
A) 0.9 percent.
B) 1 percent.
C) 10 percent.
D) 100 percent.

Quizplus · Accepted Answer

Inflation rate is calculated as the percentage change in the price index from one period to another. To calculate the inflation rate between 2008 and 2009, we use the formula:

Inflation rate = ((Price level in 2009 - Price level in 2008) / Price level in 2008) x 100

Plugging in the numbers, we get:

Inflation rate = ((100 - 91) / 91) x 100 = 9.89 or approximately 10 percent

Therefore, the correct answer is C) 10 percent.

-In the Above Table,the Inflation Rate Between 2008 and 2009