Which of the following changes in the price index produces the greatest rate of inflation: 12 to 15,20 to 24,or 30 to 35?
A)12 to 15
B)20 to 24
C)30 to 35
D)All of these changes produce the same rate of inflation.

Question

Quizplus · Accepted Answer

The rate of inflation is calculated as the percentage increase in the price index. For 12 to 15, the increase is 25% ((15-12)/12*100). For 20 to 24, the increase is 20% ((24-20)/20*100). For 30 to 35, the increase is approximately 16.67% ((35-30)/30*100). Therefore, the change from 12 to 15 produces the greatest rate of inflation.

Which of the Following Changes in the Price Index Produces