Suppose the Price Levels in an Economy in Four Successive

question 80

Multiple Choice

Suppose the price levels in an economy in four successive years are 100, 120, 133, and 140, respectively. Which of the following is true in such a case?

• A) The economy is experiencing hyperinflation.
• B) The economy is experiencing deflation.
• C) The economy is experiencing inflation.
• D) The economy is experiencing appreciation.
• E) The economy is experiencing disinflation.