{"id":94064,"date":"2025-06-01T12:02:50","date_gmt":"2025-06-01T12:02:50","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=94064"},"modified":"2025-06-01T12:02:50","modified_gmt":"2025-06-01T12:02:50","slug":"the-rate-of-inflation-is-the-rate-of-change-of-general-price-level-whi","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-rate-of-inflation-is-the-rate-of-change-of-general-price-level-whi\/","title":{"rendered":"The rate of inflation is the rate of change of general price level whi"},"content":{"rendered":"

The rate of inflation is the rate of change of general price level which is measured as<\/p>\n

[amp_mcq option1=”Rate of inflation (year x) = Price level (year x) \u2013 Price level (year x \u2013 1) \/ Price level (year x \u2013 1) \u00d7 100″ option2=”Rate of inflation (year x) = Price level (year x) \u2013 Price level (year x + 1) \/ Price level (year x + 1) \u00d7 100″ option3=”Rate of inflation (year x) = Price level (year x) + Price level (year x \u2013 1) \/ Price level (year x \u2013 1) \u00d7 100″ option4=”Rate of inflation (year x) = Price level (year x) + Price level (year x + 1) \/ Price level (year x + 1) \u00d7 100″ correct=”option1″]<\/p>\n

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This question was previously asked in<\/div>\n
UPSC SO-Steno – 2018<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe rate of inflation (year x) is measured as (Price level (year x) \u2013 Price level (year x \u2013 1)) \/ Price level (year x \u2013 1) \u00d7 100.
\n<\/section>\n
\nInflation rate is defined as the percentage change in the general price level over a period. The standard formula for calculating the percentage change between two values (in this case, price levels in year x and year x-1) is (New Value – Old Value) \/ Old Value * 100. Applying this to price levels, where the “old value” is the price level in the base year (year x-1) and the “new value” is the price level in the current year (year x), yields the formula in option A.
\n<\/section>\n
\nPrice level can be represented by indices like the Consumer Price Index (CPI) or the Wholesale Price Index (WPI). The formula calculates the annual inflation rate if year x and year x-1 are consecutive years.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

The rate of inflation is the rate of change of general price level which is measured as [amp_mcq option1=”Rate of inflation (year x) = Price level (year x) \u2013 Price level (year x \u2013 1) \/ Price level (year x \u2013 1) \u00d7 100″ option2=”Rate of inflation (year x) = Price level (year x) \u2013 … <\/p>\n

Detailed SolutionThe rate of inflation is the rate of change of general price level whi<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1095],"tags":[1114,1120,1190],"class_list":["post-94064","post","type-post","status-publish","format-standard","hentry","category-upsc-so-steno","tag-1114","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nThe rate of inflation is the rate of change of general price level whi<\/title>\n<meta name=\"description\" content=\"The rate of inflation (year x) is measured as (Price level (year x) \u2013 Price level (year x \u2013 1)) \/ Price level (year x \u2013 1) \u00d7 100. Inflation rate is defined as the percentage change in the general price level over a period. The standard formula for calculating the percentage change between two values (in this case, price levels in year x and year x-1) is (New Value - Old Value) \/ Old Value * 100. Applying this to price levels, where the "old value" is the price level in the base year (year x-1) and the "new value" is the price level in the current year (year x), yields the formula in option A.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-rate-of-inflation-is-the-rate-of-change-of-general-price-level-whi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The rate of inflation is the rate of change of general price level whi\" \/>\n<meta property=\"og:description\" content=\"The rate of inflation (year x) is measured as (Price level (year x) \u2013 Price level (year x \u2013 1)) \/ Price level (year x \u2013 1) \u00d7 100. Inflation rate is defined as the percentage change in the general price level over a period. The standard formula for calculating the percentage change between two values (in this case, price levels in year x and year x-1) is (New Value - Old Value) \/ Old Value * 100. Applying this to price levels, where the "old value" is the price level in the base year (year x-1) and the "new value" is the price level in the current year (year x), yields the formula in option A.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-rate-of-inflation-is-the-rate-of-change-of-general-price-level-whi\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T12:02:50+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The rate of inflation is the rate of change of general price level whi","description":"The rate of inflation (year x) is measured as (Price level (year x) \u2013 Price level (year x \u2013 1)) \/ Price level (year x \u2013 1) \u00d7 100. Inflation rate is defined as the percentage change in the general price level over a period. The standard formula for calculating the percentage change between two values (in this case, price levels in year x and year x-1) is (New Value - Old Value) \/ Old Value * 100. Applying this to price levels, where the \"old value\" is the price level in the base year (year x-1) and the \"new value\" is the price level in the current year (year x), yields the formula in option A.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/the-rate-of-inflation-is-the-rate-of-change-of-general-price-level-whi\/","og_locale":"en_US","og_type":"article","og_title":"The rate of inflation is the rate of change of general price level whi","og_description":"The rate of inflation (year x) is measured as (Price level (year x) \u2013 Price level (year x \u2013 1)) \/ Price level (year x \u2013 1) \u00d7 100. Inflation rate is defined as the percentage change in the general price level over a period. The standard formula for calculating the percentage change between two values (in this case, price levels in year x and year x-1) is (New Value - Old Value) \/ Old Value * 100. Applying this to price levels, where the \"old value\" is the price level in the base year (year x-1) and the \"new value\" is the price level in the current year (year x), yields the formula in option A.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/the-rate-of-inflation-is-the-rate-of-change-of-general-price-level-whi\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T12:02:50+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/the-rate-of-inflation-is-the-rate-of-change-of-general-price-level-whi\/","url":"https:\/\/exam.pscnotes.com\/mcq\/the-rate-of-inflation-is-the-rate-of-change-of-general-price-level-whi\/","name":"The rate of inflation is the rate of change of general price level whi","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T12:02:50+00:00","dateModified":"2025-06-01T12:02:50+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The rate of inflation (year x) is measured as (Price level (year x) \u2013 Price level (year x \u2013 1)) \/ Price level (year x \u2013 1) \u00d7 100. 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