If the price level for the last three months has been 112, 125, and 126, we would say
A) inflation has been constant over the three months.
B) inflation was more rapid between the first and second month than between the second and third month.
C) inflation has steadily increased over the three months.
D) inflation was less rapid between the first and second month than between the second and third month.

Question

Quizplus · Accepted Answer

The price level increased from 112 to 125 (a 13-unit increase) between the first and second month, and from 125 to 126 (a 1-unit increase) between the second and third month, indicating more rapid inflation between the first and second month.

If the Price Level for the Last Three Months Has