If the price level was 100 in 2009 and 102 in 2010,the inflation rate was
A)102%.
B)20%.
C)2%.
D)0)2%.

Question

Quizplus · Accepted Answer

The inflation rate can be calculated using the formula:
Inflation rate = ((Price level in current year - Price level in previous year)/ Price level in previous year) x 100%
Using this formula, we get:
Inflation rate = ((102-100)/100) x 100%
Inflation rate = (2/100) x 100%
Inflation rate = 2%
Therefore, the correct answer is C) 2%.

If the Price Level Was 100 in 2009 and 102