If the Price Level Is 100 in One Year and Rises

question 106

Multiple Choice

If the price level is 100 in one year and rises to 102 the next year, then the inflation rate is

• A) 2.0 percent.
• B) 0.02 percent.
• C) 102 percent.
• D) 100 percent.
• E) unable to be determined without knowing potential GDP.

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Definitions:

Rotational Slide

A type of landslide involving the rotational movement of rock or soil along a curved surface, typically caused by the undercutting of a slope or the saturation of soil.

Debris Avalanche

A high-velocity flow of soil, sediment, and rock, commonly from the collapse of a steep mountainside.

Permafrost

Permanently frozen ground that occurs in high latitude regions of the Earth, consisting of soil, gravel, and sand usually bound together by ice.

Rock Fall

A mass-wasting process whereby large rocks and smaller pieces of bedrock detach and fall onto the ground.