If the Price Level Increases from 200 in Year 1

question 47

Multiple Choice

If the price level increases from 200 in year 1 to 220 in year 2,the rate of inflation from year 1 to year 2 is

• A)20%.
• B)10%.
• C)11%.
• D)120%.

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Definitions:

A Priori Needs

Needs or requirements that are understood or established prior to a project or assessment, based on theoretical deduction rather than empirical evidence.

Actualization Needs

The highest level in Maslow's hierarchy of needs, focusing on realizing personal potential, self-fulfillment, and seeking personal growth.

Drive Theory

A psychological theory that suggests motivation is driven by an individual's desire to fulfill basic physiological needs and reduce internal tensions.

Incentive Theory

A theory in psychology that suggests behavior is motivated by a desire for rewards or incentives.