Refer to the information provided in Table 6.5 below to answer the questions that follow.
Table 6.5

-Refer to Table 6.5.Assume that this economy produces only two goods Good X and Good Y.If year 1 is the base year,the value for this economy's inflation rate between year 1 and year 2 is
A)-6.1%.
B)-5.5%.
C)6.5%.
D)79%.

Question

Refer to the information provided in Table 6.5 below to answer the questions that follow.
Table 6.5
 
-Refer to Table 6.5.Assume that this economy produces only two goods Good X and Good Y.If year 1 is the base year,the value for this economy's inflation rate between year 1 and year 2 is
A)-6.1%. 
B)-5.5%. 
C)6.5%. 
D)79%.

Quizplus · Accepted Answer

The inflation rate is calculated by finding the percentage change in the price level from the base year (year 1) to the next year (year 2). If the price level increased by 6.5% from year 1 to year 2, then the inflation rate is 6.5%.

Refer to the Information Provided in Table 6