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

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

Inflation is the average rate of price increase across goods. If one good rises by 8% and the other by 10%, the average could be 9%, assuming equal weighting.

If There Are Only Two Goods in the Economy, One