Assume an economy experienced a higher inflation rate,as measured by the CPI,between 2004 and 2005 than it experienced between 2003 and 2004.Which of the following scenarios is consistent with this assumption?

Question

Quizplus · Accepted Answer

Option B shows a larger increase in CPI between 2004 and 2005 than between 2003 and 2004, indicating a higher inflation rate in the latter period. Option A shows a steady incremental increase in CPI, while option C shows a massive increase in CPI, which implies a very high rate of inflation.

Assume an Economy Experienced a Higher Inflation Rate,as Measured by the CPI,between