Which of the Following Statements Concerning the History of U

question 18

Multiple Choice

Which of the following statements concerning the history of U.S.inflation is not correct?

• A)Prices rose at an average annual rate of about 3.6 percent over the last 80 years.
• B)There was about a 17-fold increase in the price level over the last 80 years.
• C)Inflation in the 1970s was below the average over the last 80 years.
• D)The United States has experienced periods of deflation.

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Definitions:

Consumer Price Index

An indicator that measures the average price weighted across a mix of consumer goods and services, including but not limited to transportation, food, and healthcare.

Deflation

A drop in the overall price of goods and services, frequently signifying a decrease in the economy's money or credit supply.

Unemployment Rates

The share of workers who are without jobs and are actively searching for employment.

Industrial Nations

Countries that are characterized by a significant level of industrialization, a high standard of living, and a well-developed infrastructure.