Multiple Choice
If the price index in the first year was 80, in the second year was 100, and in the third year was 90, what did the economy experience?
A) 20 percent inflation between the first and second years and 10 percent inflation between the second and third years
B) 20 percent inflation between the first and second years and 10 percent deflation between the second and third years
C) 25 percent inflation between the first and second years and 10 percent inflation between the second and third years
D) 25 percent inflation between the first and second years and 10 percent deflation between the second and third years
Correct Answer:

Verified
Correct Answer:
Verified
Q40: Because the CPI is based on a
Q41: Suppose that the nominal interest rate is
Q43: Which statement best describes the relationship between
Q44: When does a cost-of-living allowance (COLA) automatically
Q46: The price index in 2018 is 130,
Q47: Aditi deposits $1000 into a savings account
Q48: Which statement best defines "indexation"?<br>A) It is
Q49: If there is a reduction in the
Q50: If the cost of shelter increases by
Q115: There is no longer much debate among