If the price level last year was 220 and this year is 250, what is the inflation rate between the two years?
A) 30 percent
B) 13.6 percent
C) 12.2 percent
D) 20 percent

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage increase in the price level from one year to the next. The formula to calculate the inflation rate is: [(Price Level in Current Year - Price Level in Previous Year) / Price Level in Previous Year] * 100. Using the given numbers: [(250 - 220) / 220] * 100 = 13.6 percent.

If the Price Level Last Year Was 220 and This