A decrease in the inflation rate from 10% to 3% implies that average price level has declined.

Name: A decrease in the inflation rate from 10% to 3% implies that average price level has declined.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A decrease in the inflation rate means that the rate at which prices are increasing has slowed down, but it does not necessarily mean that the average price level has declined. The average price level may still be increasing, just at a slower rate than before.

A Decrease in the Inflation Rate from 10% to 3