Final answer:
Inflation refers to the increase in the general price level of goods and services over time. To calculate the inflation rate from 2020 to 2021, we need to compare the change in the price level over that period. Changes in the money supply are reflected in changes in the price level.
Step-by-step explanation:
Inflation refers to the increase in the general price level of goods and services in an economy over a period of time. It is typically measured by calculating the percentage change in a price index, such as the Consumer Price Index (CPI). To determine the inflation rate from 2020 to 2021, we need to compare the change in the price level over that period.
Since the question states that streaming device output did not change from 2020 to 2021, and the velocity of money remained constant, any changes in the money supply would be reflected in changes in the price level. Therefore, the inflation rate can be calculated by comparing the change in the money supply to the change in the price level.