Reference: Ref 16-3 (Table: Annual Inflation) This table shows inflation data for an economy. During what period did it experience deflation?
A) 2003 to 2005
B) 2005 to 2006
C) 1998 to 2000
D) 2000 to 2002

Question

Reference: Ref 16-3 (Table: Annual Inflation) This table shows inflation data for an economy. During what period did it experience deflation?
A) 2003 to 2005 
B) 2005 to 2006 
C) 1998 to 2000 
D) 2000 to 2002

Quizplus · Accepted Answer

Deflation is a decrease in the general price level of goods and services. Looking at the table, the only period where the inflation rate is negative is from 2003 to 2005, making the answer choice A the correct answer.

Reference: Ref 16-3 (Table: Annual Inflation) This Table Shows Inflation