If there are only two goods in the economy, one whose price rises by 8% and one by 10%, it is possible that inflation is:

Name: If there are only two goods in the economy, one whose price rises by 8% and one by 10%, it is possible that inflation is:
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Quizplus · Accepted Answer

Inflation is the weighted average of price increases. If one good's price rises by 8% and the other by 10%, the overall inflation rate could be 9% if the goods have equal weight in the economy.

If There Are Only Two Goods in the Economy, One