The data below show data for Germany including real GDP (in billions of euros) and the price level. $$\begin{array} { | c | c | c | }
\hline & \text { Real GDP } & \text { Price Level } \
\hline 2002 & 2088 & 102.6 \
\hline 2003 & 2083 & 103.6 \
\hline 2004 & 2105 & 106 \
\hline 2005 & 2121 & 108.2 \
\hline 2006 & 2182 & 109.7 \
\hline 2007 & 2237 & 109.5 \
\hline
\end{array}$$
In which of the following year(s) did Germany experience inflation?

Question

The data below show data for Germany including real GDP (in billions of euros) and the price level. $$\begin{array} { | c | c | c | } 
\hline & \text { Real GDP } & \text { Price Level } \
\hline 2002 & 2088 & 102.6 \
\hline 2003 & 2083 & 103.6 \
\hline 2004 & 2105 & 106 \
\hline 2005 & 2121 & 108.2 \
\hline 2006 & 2182 & 109.7 \
\hline 2007 & 2237 & 109.5 \
\hline
\end{array}$$
In which of the following year(s) did Germany experience inflation?

Quizplus · Accepted Answer

Inflation occurs when the price level increases. The price level increased from 2002 to 2003, from 2003 to 2004, from 2004 to 2005, and from 2005 to 2006. Therefore, Germany experienced inflation in 2003, 2004, 2005, and 2006.

The Data Below Show Data for Germany Including Real GDP