If the Price Index Was 90 in Year 1,100 in Year

question 194

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.

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Definitions:

Knowledge Creation

The process of generating new ideas, concepts, or insights within an individual or organizational context.

Spur Innovation

To actively encourage or stimulate the development of new ideas, products, or ways of doing something within a team or organization.

Differentiation

The process through which organizations develop and maintain unique identities and procedures that set them apart from their competitors.

Unusually Low Price

Refers to a price point significantly below the standard or expected cost, which can raise concerns or suggest a special offer.