For the Following Question(s), Suppose an Economy Produces Only Pens

question 34

Multiple Choice

For the following question(s) , suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:

-What is the inflation rate using base year 1?

• A) 10%
• B) 15%
• C) 20%
• D) 25%
• E) 13%