If the consumer price index is 102 in Year One, 108 in Year Two, 106 in Year Three, 105 in Year Four, and 104 in Year Five, which statement correctly describes what the economy is experiencing? (1 point)

Question

• There is inflation from Year One to Year Two, then deflation after that
• There is deflation from Year One to Year Two, then inflation after that.
O There is inflation from Year One to Year Two, then inflation after that.
• There is deflation from Year One to Year Two, then deflation after that.

Answer 1

There is inflation from Year One to Year Two, then inflation after that.