Question

During a certain 10-year period, the consumer price index (CPI) increased by 90%, but during the next 10-year period, it increased by only 70%. Which of these conditions must have existed during the second 10-year period?

a) High inflation
b) Economic recession
c) Lower inflation
d) Stagnant economy

Answer 1

The condition that must have existed during the second 10-year period is lower inflation.

Step-by-step explanation:

The condition that must have existed during the second 10-year period, when the Consumer Price Index (CPI) increased by only 70%, is lower inflation. When the CPI increases at a slower rate, it indicates that the general level of prices is rising at a slower pace. This means that there is lower inflation during the second 10-year period compared to the first 10-year period.