If All Prices Experience an Increase of 4 Percent in One

Multiple Choice

If all prices experience an increase of 4 percent in one year, then which of the following is necessarily true?

A) The rate of inflation for that year is 4 percent.
B) The level of consumer demand is higher in that year as compared to the previous year.
C) The average unemployment level has increased.
D) The output of the economy has fallen by 4 percent in that year.