The rate of inflation is equal to which of the following?
A)100 x current price - price in previous periods x price in previous periods).
B)100 x price in previous periods - current price)/price in previous periods
C)100 x current price - price in previous periods)/price in previous periods
D)100 x price in previous periods - current price/price in previous periods)
E)None of the above

Question

Quizplus · Accepted Answer

To calculate the rate of inflation, we need to compare the current price of goods and services with the price in previous periods. The formula for calculating the rate of inflation is (current price - price in previous periods) / price in previous periods) x 100. Option C correctly represents this formula.

The Rate of Inflation Is Equal to Which of the Following