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During a certain four-month period, the consumer price index (CPI) increased by only 5%. But during the next four-month period, it decreased by 10%. Which of these conditions must have existed during the second four-month period?

A . Depression
B. Inflation
C. Deflation
D. Recession

During a certain four-month period, the consumer price index (CPI) increased by only-example-1
User Hendekagon
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1 Answer

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C, deflation.  When prices increase, it is inflation and when prices decrease it is deflation.
User Vrushali Raut
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