-Refer to Table 6.11. If 1999 is the base year, then the inflation (i.e., the growth rate of the price index) between 2000 and 2001 is:
A) about 21 percent.
B) about 14 percent.
C) about 17 percent.
D) about 38 percent.

Question

-Refer to Table 6.11. If 1999 is the base year, then the inflation (i.e., the growth rate of the price index) between 2000 and 2001 is:
A) about 21 percent. 
B) about 14 percent. 
C) about 17 percent. 
D) about 38 percent.

Quizplus · Accepted Answer

The inflation rate between 2000 and 2001 is (114.0 - 100.0) / 100.0 * 100% = 14.0%.