The Price Level Rises from 120 to 126

question 49

Multiple Choice

The price level rises from 120 to 126.What is the inflation rate?

• A)3%
• B)5%
• C)6%
• D)None of the above is correct.

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Definitions:

Import Restrictions

Government-imposed limits or tariffs on the number or value of goods that can be imported into a country, typically to protect domestic industries.

Purchasing Power

The worth of a currency depicted by the quantity of goods or services that can be purchased with one unit of the currency.

Textile Manufacturers

Companies and businesses involved in the production of fibers, yarns, and fabrics, or the conversion of these materials into various textile products.

Restrictive Quotas

Limits set by governments on the quantity of goods that can be imported or exported to control market access.