Figure 13-4
-Refer to Figure 13-4.Given the economy is at point A in year 1,what is the inflation rate between year 1 and year 2?

Question

Figure 13-4 
-Refer to Figure 13-4.Given the economy is at point A in year 1,what is the inflation rate between year 1 and year 2?

Quizplus · Accepted Answer

The inflation rate is calculated by the percentage change in the price level from year 1 to year 2. If the economy is at point A in year 1 and moves to a new point in year 2, the inflation rate is determined by the difference in the price levels at these points. Based on the given options, 1.8% is the correct inflation rate.

Figure 13-4 -Refer to Figure 13-4.Given the Economy Is at Point a at Point