If the price index in period 2 is 105 and the price index in period 3 is 122, the rate of inflation between period 2 and period 3 is
A) 11.6%.
B) 12.9%.
C) 16.2%.
D) 17.0%.

Question

Quizplus · Accepted Answer

The rate of inflation is calculated by taking the difference in the price index between the two periods, dividing by the price index in the earlier period, and then multiplying by 100 to get a percentage. So, $\frac{122 - 105}{105} \times 100 = 16.2\%$.

If the Price Index in Period 2 Is 105 and the Price