Table 24-6
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs.
-Refer to Table 24-6. If the base year is 2009, then the economy's inflation rate in 2010 is
A)20 percent.
B)25 percent.
C)30 percent.
D)120 percent.

Question

Table 24-6
The table below pertains to Napandsnack, an economy in which the typical consumer's basket consists of 2 pillows and 15 hotdogs. 
-Refer to Table 24-6. If the base year is 2009, then the economy's inflation rate in 2010 is
A)20 percent. 
B)25 percent. 
C)30 percent. 
D)120 percent.

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the price level from the base year to the next year. If the base year is 2009, and the price level increased by 20% in 2010, then the inflation rate is 20%.

Table 24-6 The Table Below Pertains to Napandsnack, an Economy in Which