The table shows consumer price index data for the United States. In which year did deflation occur?
$$\begin{array}{l}
\text { U.S. CONSUMER PRICE INDEX }\
\begin{array} { | c | c | }
\hline \text { YEAR } & \begin{array} { c }
\text { CONSUMER } \
\text { PRICE INDEX }
\end{array} \
\hline 2005 & 195.27 \
\hline 2006 & 201.56 \
\hline 2007 & 207.34 \
\hline 2008 & 215.25 \
\hline 2009 & 214.57 \
\hline 2010 & 218.08 \
\hline
\end{array}
\end{array}$$
A)2006
B)2007
C)2008
D)2009

Question

The table shows consumer price index data for the United States. In which year did deflation occur?
$$\begin{array}{l}
\text { U.S. CONSUMER PRICE INDEX }\
\begin{array} { | c | c | } 
\hline \text { YEAR } & \begin{array} { c } 
\text { CONSUMER } \
\text { PRICE INDEX }
\end{array} \
\hline 2005 & 195.27 \
\hline 2006 & 201.56 \
\hline 2007 & 207.34 \
\hline 2008 & 215.25 \
\hline 2009 & 214.57 \
\hline 2010 & 218.08 \
\hline
\end{array}
\end{array}$$
A)2006
B)2007
C)2008
D)2009

Quizplus · Accepted Answer

Deflation occurs when there is a sustained decrease in the general price level of goods and services. Looking at the table, we can see that the CPI decreased from 215.303 in 2008 to 214.537 in 2009, indicating deflation. Therefore, the correct answer is D)2009.

The Table Shows Consumer Price Index Data for the United