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Answer :
To find the inflation rate for 2016, we use the formula for inflation rate based on the price level index:
[tex]\[ \text{Inflation Rate} = \left(\frac{\text{Price Level Index this year} - \text{Price Level Index last year}}{\text{Price Level Index last year}}\right) \times 100 \][/tex]
For 2016, the price level index is 100, and for 2015, it is 97.9. Let's plug these numbers into the formula:
1. Subtract the Price Level Index of 2015 from the Price Level Index of 2016:
[tex]\[
100 - 97.9 = 2.1
\][/tex]
2. Divide the result by the Price Level Index of 2015:
[tex]\[
\frac{2.1}{97.9}
\][/tex]
3. Multiply the result by 100 to get the percentage:
[tex]\[
\left(\frac{2.1}{97.9}\right) \times 100 \approx 2.15\%
\][/tex]
Therefore, the inflation rate for 2016 is approximately [tex]\(2.15\%\)[/tex].
So, the correct answer is (a) [tex]\(2.15\%\)[/tex].
[tex]\[ \text{Inflation Rate} = \left(\frac{\text{Price Level Index this year} - \text{Price Level Index last year}}{\text{Price Level Index last year}}\right) \times 100 \][/tex]
For 2016, the price level index is 100, and for 2015, it is 97.9. Let's plug these numbers into the formula:
1. Subtract the Price Level Index of 2015 from the Price Level Index of 2016:
[tex]\[
100 - 97.9 = 2.1
\][/tex]
2. Divide the result by the Price Level Index of 2015:
[tex]\[
\frac{2.1}{97.9}
\][/tex]
3. Multiply the result by 100 to get the percentage:
[tex]\[
\left(\frac{2.1}{97.9}\right) \times 100 \approx 2.15\%
\][/tex]
Therefore, the inflation rate for 2016 is approximately [tex]\(2.15\%\)[/tex].
So, the correct answer is (a) [tex]\(2.15\%\)[/tex].
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