2.3 Economic performance

The table below shows the Consumer Price Index (CPI) of an economy over a four-year period:

\begin{array}{|c|c|} \hline \text{Year} & \text{Consumer Price Index (CPI)} \\ \hline 1 & 100 \\ 2 & 110 \\ 3 & 115 \\ 4 & 112 \\ \hline \end{array}

Which one of the following statements is correct?

Between Year 3 and Year 4, the economy experienced disinflation.

Between Year 2 and Year 3, the economy experienced disinflation.

The purchasing power of the currency was higher in Year 3 than in Year 2.

Between Year 2 and Year 3, the economy experienced deflation.

2.3 Economic performance Questions

The table below shows the Consumer Price Index (CPI) of an economy over a four-year period:

\begin{array}{|c|c|} \hline \text{Year} & \text{Consumer Price Index (CPI)} \\ \hline 1 & 100 \\ 2 & 110 \\ 3 & 115 \\ 4 & 112 \\ \hline \end{array}

Which one of the following statements is correct?

Between Year 3 and Year 4, the economy experienced disinflation.

Between Year 2 and Year 3, the economy experienced disinflation.

The purchasing power of the currency was higher in Year 3 than in Year 2.

Between Year 2 and Year 3, the economy experienced deflation.