If the Price Index in the First Year Was 90,in

question 107

Multiple Choice

If the price index in the first year was 90,in the second year was 100,and in the third year was 95,what did the economy experience?

• A) 10 percent inflation between the first and second years and 5 percent inflation between the second and third years
• B) 10 percent inflation between the first and second years and 5 percent deflation between the second and third years
• C) 11 percent inflation between the first and second years and 5 percent inflation between the second and third years
• D) 11 percent inflation between the first and second years and 5 percent deflation between the second and third years

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Definitions:

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