How has the pattern of movements in the U.S. price level changed since World War II?
A) Periods of inflation have largely been eliminated.
B) Periods of deflation have largely been eliminated.
C) The annual rate of inflation has never risen above 3 percent.
D) The price level has become more volatile.

Question

Quizplus · Accepted Answer

Since World War II, the U.S. has largely avoided periods of deflation, focusing instead on managing inflation through monetary policy. While there have been fluctuations in the inflation rate, including periods above 3 percent, outright deflation has been rare, indicating a significant change in economic management and policy effectiveness.

How Has the Pattern of Movements in the U