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dsp73
3 years ago
14

During a certain four-year period, the consumer price index (CPI) increased by only 5%, but during the next four-years period, i

t decreased by 15%. Which of these following conditions must have existed during the second four year period?
A. Depression
B. Inflation
C. Deflation
D. Recession

Social Studies
2 answers:
masya89 [10]3 years ago
5 0
I put deflation and its right
svetlana [45]3 years ago
4 0

The correct answer is C.

Deflation is the inverse of inflation. It is a process of progressive decline of the price level in a certain country over a period of time. The CPI is an index which measures the price level, as it is constituted by the market prices of a set of goods and services in a specific country. Therefore, in the period in which the CPI experienced a sustained decrease (of around 15%) it is by definition a period of deflation.

Inflation, on the contrary, is the proggresive and sustained increase in the price level in a certain country during a period of time.

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