How Can the Rate of Inflation Be Calculated

question 1

Multiple Choice

How can the rate of inflation be calculated?

• A)By subtracting the real income from the nominal income.
• B)By subtracting last year's price index from this year's price index.
• C)By subtracting this year's price index from last year's price index,dividing the difference by this year's price index,and multiplying by 100.
• D)By subtracting last year's price index from this year's price index and dividing the difference by last year's price index and multiplying by 100.
• E)By dividing the real income by the nominal income and multiplying by 100.

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