Suppose That the Price Level Was 100 in 2005, 110

question 392

Multiple Choice

Suppose that the price level was 100 in 2005, 110 in 2006, 120 in 2007, and 130 in 2008. Over these three years,

• A) prices were stable.
• B) inflation did not occur.
• C) the inflation rate was positive.
• D) the inflation rate accelerated.