Which statement best describes the evolution of inflation in Canada?
A) It was a constant 6 percent through the 2000s.
B) The inflation rate was, on average, 0 percent during the 1980s.
C) During the 1990s, prices rose at an average rate of 2 percent per year.
D) During the 1970s, there was deflation.

Question

Quizplus · Accepted Answer

During the 1990s, prices in Canada rose at an average annual rate of 2 percent. This is based on historical data from the Bank of Canada, which shows that inflation in Canada has fluctuated over time, but has generally been within the range of 1-3 percent since the 1980s. Option A is incorrect because a constant 6 percent inflation rate through the 2000s is not accurate. Option B is incorrect because the inflation rate was not 0 percent during the 1980s, but rather varied between highs of over 12 percent and lows of around 2 percent. Option D is incorrect because there was not deflation during the 1970s, but rather high inflation rates that peaked at over 12 percent in 1981.

Which Statement Best Describes the Evolution of Inflation in Canada