Suppose that the price level was 100 in 2011, 110 in 2012, and 130 in 2013. Over these three years
A) deflation occurred at an accelerating rate.
B) the inflation rate was positive but slowing.
C) prices were stable.
D) the inflation rate was positive and accelerating.

Question

Quizplus · Accepted Answer

The inflation rate was positive and accelerating because the price level increased from 100 to 110 from 2011 to 2012, and then from 110 to 130 from 2012 to 2013, indicating a growing rate of increase in prices.

Suppose That the Price Level Was 100 in 2011, 110