If the price level increased from 200 to 250, then what was the inflation rate?

a. 50 percent
b. 25 percent
c. 20 percent
d. None of the above is correct.

b

Economics

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If economic data reveals that inflation is rising, the Fed:

A. does not need to know the state of real GDP growth in order to justify increasing the growth rate of the money supply. B. may increase the growth rate of the money supply without really knowing the state of real GDP growth. C. may reduce the growth rate of the money supply without really knowing the state of real GDP growth. D. will also at that time know the state of real GDP growth and can respond accordingly.

Economics

One way to describe the tax multiplier is that it equals the

a. the spending multiplier b. the negative of the spending multiplier minus1.0 c. the GNP gap minus the GDP gap d. the reciprocal of the marginal propensity to consume e. the best estimate of the optimal tax rate

Economics