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A Farmer Produces the Same Output in 2020 as in 2019

Question 14

Multiple Choice

A farmer produces the same output in 2020 as in 2019. His input prices increase by 3 percent and so does his product price. Which inflation rate makes the farmer as well off in 2020 as in 2019?


A) 0 percent
B) 1 percent
C) 3 percent
D) 6 percent

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