If the Price Index Was 90 in Year 1, 100

Multiple Choice

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.