Table 24-5
The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys.
-Refer to Table 24-5. The inflation rate was
A)negative in 2005 and negative in 2006.
B)negative in 2005 and positive in 2006.
C)positive in 2005 and negative in 2006.
D)positive in 2005 and positive in 2006.

Question

Table 24-5
The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. 
-Refer to Table 24-5. The inflation rate was
A)negative in 2005 and negative in 2006. 
B)negative in 2005 and positive in 2006. 
C)positive in 2005 and negative in 2006. 
D)positive in 2005 and positive in 2006.

Quizplus · Accepted Answer

The inflation rate is positive in both 2005 and 2006, indicating that the general price level increased in both years.

Table 24-5 The Table Below Pertains to Wrexington, an Economy in Which