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.
Correct Answer:

Verified
Correct Answer:
Verified
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