If the price index was 90 in year 1, 100 in year 2, and 95 in year 3, then the economy experienced
a. 10 percent inflation between years 1 and 2 ,and 5 percent inflation between years 2 and 3.
b. 10 percent inflation between years 1 and 2, and 5 percent deflation between years 2 and 3.
c. 11.1 percent inflation between years 1 and 2, and 5 percent inflation between years 2 and 3.
d. 11.1 percent inflation between years 1 and 2, and 5 percent deflation between years 2 and 3.
d
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If one person's consumption of a good does not preclude another's consumption, the good is said to be:
A. nonrival in consumption. B. rival in consumption. C. nonexcludable. D. excludable.
In an open economy, if domestic citizens decide to save more, then the domestic real interest rate will ________ and the level of capital investment in the country will ________, holding other factors constant.
A. decrease; decrease B. decrease; increase C. increase; increase D. increase; decrease