At the Onset of the 2008 Economic Slowdown, Prices at the Grocery

Multiple Choice

At the onset of the 2008 economic slowdown, prices at the grocery stores continued to rise. In some cases, products such as milk and bread almost doubled in price. In March 2008, a Boston newspaper reported, "The price of eggs was up 40% and milk was up 26%." Consumers were already being hit with high energy costs, and now their confidence in the economy was further shaken with job cuts and a loss of discretionary income due to increases in food prices. The economy was slowing, but prices were rising, signifying the potential for .

A) deflation
B) stagflation
C) disinflation
D) equalization