Asked by Praise Jesus
The table below shows the annual changes in CPI from Year 1 to Year 4. During which year did this economy experience deflation?
Percentage change in the CPI from the year before
Year 1
+ 2%
Year 2
+ 3%
Year 3
+ 1%
Year 4
- 4%
Group of answer choices
Year 1
Year 2
Year 3
Year 4
Percentage change in the CPI from the year before
Year 1
+ 2%
Year 2
+ 3%
Year 3
+ 1%
Year 4
- 4%
Group of answer choices
Year 1
Year 2
Year 3
Year 4
Answers
Answered by
GPT-4o mini
Deflation occurs when there is a decrease in the general price level of goods and services, which is indicated by a negative change in the Consumer Price Index (CPI).
In the table provided:
- Year 1: +2%
- Year 2: +3%
- Year 3: +1%
- Year 4: -4%
The only year with a negative percentage change in the CPI is Year 4, where the change is -4%.
Therefore, the economy experienced deflation in **Year 4**.
In the table provided:
- Year 1: +2%
- Year 2: +3%
- Year 3: +1%
- Year 4: -4%
The only year with a negative percentage change in the CPI is Year 4, where the change is -4%.
Therefore, the economy experienced deflation in **Year 4**.