Suppose $100 buys less in the year 2007 than in 2000. Then we can say that
A)there must have been inflation between 2000 and 2007.
B)there must have been deflation between 2000 and 2007.
C)the economy must have been growing rapidly between 2000 and 2007.
D)the economy must have been growing slowly between 2000 and 2007.

Question

Quizplus · Accepted Answer

If $100 buys less in 2007 than in 2000, it implies that the prices of goods and services have increased over time, which indicates inflation.

Suppose $100 Buys Less in the Year 2007 Than in 2000