Final answer:
It would take approximately 28 years for the price level to double with a 2.5% inflation rate per year.
Step-by-step explanation:
To determine how long it would take for the price level to double with a 2.5% inflation rate per year, we can use the rule of 70. The rule of 70 states that to find the number of years it takes for a variable to double, divide 70 by the growth rate in percent.
In this case, since the inflation rate is 2.5%, we divide 70 by 2.5 to get 28. Therefore, it would take approximately 28 years for the price level to double.