Consider a Nation in Which the Price Index Was 150

question 200

Multiple Choice

Consider a nation in which the price index was 150 last year and this year it is 130.Which statement is correct?

• A) Inflation was 20% this year.
• B) Deflation was 20% this year.
• C) Housing prices must have fallen.
• D) Inflation was 13.33% this year.
• E) Deflation was 13.33% this year.

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Definitions:

Civil War

Refers to the American Civil War, a conflict between the Northern states (Union) and the Southern states (Confederacy) from 1861 to 1865, primarily over issues of slavery and states' rights.

Reconstruction

The period following the American Civil War (1865-1877), focusing on the integration of the Southern states into the Union and the legal and social status of the freed African Americans.