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When a price index moves from 107 to 110, the precise inflation rate is:

A3.0%
B3.3%
C1.7%
D2.8%
Answer & Solution
Correct answer: D. 2.8%
1. Do not just subtract the index numbers. 2. 3 divided by 107 is 0.028. 3. That is 2.8 percent. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 8, Inflation (CC BY 4.0)._
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