A price index one year was 145, and the next year it was 167. What is the approximate percentage change in the price level from one year to the next as measured by that index

Approximately 15%

Explanation:

Given that

Base index = 145

New index = 167

% change in price level = (new index - base index/base index) * 100

Therefore,

% change = (167 - 145 / 145) * 100

= (22/145) * 100

= 0.1517 * 100

= 15.17 %

Thus, there is Approximately 15% increase in price level.

Note: general increases in price is called inflation and decreases in price level is called deflation.