Post Utme Afe Babalola University 2024 Economics Question 15

Practice objective / multiple choice question 15 from the 2024 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2024 Economics Objective / Multiple Choice

Question 15 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2024 • ECONOMICS • objective

A country's inflation rate is given by the following equation: π = $ P - P* $ / P, where P is the current price level and P is the price level in the previous period. If the current price level is $100 and the price level in the previous period is $80, what is the inflation rate?

Answer Options

A. 0.25

Correct Answer B. 0.50

C. 0.75

D. 1.00

Correct Answer

Correct Option:

0.50

About This Question

This is Post Utme Afe Babalola University 2024 Economics Question 15. It is one of the objective questions from the 2024 Post Utme Afe Babalola University Economics examination.

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Post Utme Afe Babalola University 2024 Economics Question 15

A country's inflation rate is given by the following equation: π = \( P - P* \) / P*, where P is the current price level and P* is the price level in the previous period. If the current price level is $100 and the price level in the previous period is $80, what is the inflation rate?

Answer Options

About This Question

Master the Exam!

A country's inflation rate is given by the following equation: π = \( P - P* \) / P, where P is the current price level and P is the price level in the previous period. If the current price level is $100 and the price level in the previous period is $80, what is the inflation rate?