Which of the following best describes the evolution of inflation in Canada?
A)It has been relatively constant over the past 70 years.
B)The inflation rate was constant at 7 percent annually for most of the twentieth century.
C)During the 1990s, prices rose at an average rate of 2 percent per year.
D)During the 1990s, there was deflation.

Question

Quizplus · Accepted Answer

The evolution of inflation in Canada has not been constant over the past 70 years. Option B is incorrect as it suggests a constant inflation rate of 7%. Option D is also incorrect as there was no deflation in the 1990s. Option C is correct as during the 1990s, prices rose at an average rate of 2% per year.

Which of the Following Best Describes the Evolution of Inflation