During the Last Half of 1999 and First Quarter of 2000,the

Multiple Choice

During the last half of 1999 and first quarter of 2000,the members of the Organization of Petroleum Exporting Countries (OPEC) negotiated reductions in the global production of oil.As a result,the price of heating oil and gasoline increased dramatically during that period.This led some analysts to predict an increase in the inflation rate in oil-consuming countries.Drawing such a conclusion results from confusing

A) inflation with indexing.
B) inflation with deflation.
C) a change in the relative price of a good with a change in the price level.
D) a change in the relative price level with a change in the absolute price level.
E) indexing with deflating.