Reference: Ref 12-3 (Table: CPI) According to the table, in which of the following years did this country experience disinflation?
A) 1999
B) 2000
C) 2001
D) 2002

Question

Reference: Ref 12-3 (Table: CPI) According to the table, in which of the following years did this country experience disinflation?
A) 1999 
B) 2000 
C) 2001 
D) 2002

Quizplus · Accepted Answer

Disinflation is a decrease in the rate of inflation, but the inflation rate is still positive. According to the table, the inflation rates for this country were 4.4% in 1998, 2.7% in 1999, 0.7% in 2000, and -0.2% in 2001. Therefore, the country experienced disinflation in 2001. In 2002, the inflation rate increased to 1.5%, indicating that the disinflation period had ended.

Reference: Ref 12-3 (Table: CPI) According to the Table, in Which