Refer to the information provided in Table 6.9 below to answer the questions that follow.
Table 6.9
-Refer to Table 6.9. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's inflation rate between year 1 and year 2 is
A) -6.1%.
B) -5.5%.
C) 6.5%.
D) 79%.

Question

Refer to the information provided in Table 6.9 below to answer the questions that follow.
Table 6.9 
-Refer to Table 6.9. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's inflation rate between year 1 and year 2 is
A) -6.1%. 
B) -5.5%. 
C) 6.5%. 
D) 79%.

Quizplus · Accepted Answer

The inflation rate is calculated by finding the percentage change in the price level from the base year to the next year. If year 1 is the base year, the inflation rate between year 1 and year 2 is 6.5%.

Refer to the Information Provided in Table 6