Practice prompt · Q:economics-and-market-foundations/compute-inflation-001

Compute an index-period inflation rate

Distinguish the index level from its proportional change.

Updated Aug 7, 2026 Review due Nov 7, 2026
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One unchanged broad index rises from 120 to 123. Which calculation is correct?

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Answer: a

Choice a. (123 - 120) / 120 = 0.025.