(Table 4: Market Basket Prices in Macroland) Table 4 shows the cost of a given market basket of goods and services in Macroland over a four-year period. Based on the data, during which year did deflation occur?
$\begin{array}{l}
\text { Table 4: Market Basket Prices in Macroland }\
\begin{array}{|l|l|l|l|l|}
\hline & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } \
\hline \text { Cost of the market basket } & \$ 600 & \$ 640 & \$ 630 & \$ 660 \
\hline
\end{array}
\end{array}$
A) year 1
B) year 2
C) year 3
D) year 4

Question

(Table 4: Market Basket Prices in Macroland) Table 4 shows the cost of a given market basket of goods and services in Macroland over a four-year period. Based on the data, during which year did deflation occur?
 $\begin{array}{l}
\text { Table 4: Market Basket Prices in Macroland }\
\begin{array}{|l|l|l|l|l|}
\hline & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } \
\hline \text { Cost of the market basket } & \$ 600 & \$ 640 & \$ 630 & \$ 660 \
\hline
\end{array}
\end{array}$
A) year 1
B) year 2
C) year 3
D) year 4

Quizplus · Accepted Answer

Deflation occurs when the cost of goods and services decreases. In this table, the cost of the market basket decreased from \$640 in Year 2 to \$630 in Year 3, indicating deflation occurred in Year 3.

(Table 4: Market Basket Prices in Macroland) Table 4 Shows