Which of the following changes in the price index produces the greatest rate of inflation: 80 to 100,100 to 120,or 150 to 170?
A)80 to 100
B)100 to 120
C)150 to 170
D)All of these changes produce the same rate of inflation.

Question

Quizplus · Accepted Answer

The rate of inflation is calculated as the percentage change in the price index. The change from 80 to 100 represents a 25% increase, which is greater than the 20% increase from 100 to 120 and the 13.33% increase from 150 to 170.

Which of the Following Changes in the Price Index Produces