The annual percentage rate of change in the price level is the:
A) relative price.
B) Fisher effect.
C) cost of living.
D) rate of inflation.

Question

Quizplus · Accepted Answer

The annual percentage rate of change in the price level is the rate of inflation, which measures how much prices on average are increasing over time. Therefore, the correct answer is D. A refers to the comparison of prices between two goods or services, B refers to the relationship between nominal interest rates and inflation, and C refers to the overall expense of maintaining a certain standard of living.

The Annual Percentage Rate of Change in the Price Level