The table below shows the Consumer Price Index (CPI) of an economy over a four-year period:
YearConsumer Price Index (CPI)2020100.02021108.02022112.02023110.0 \begin{array}{|c|c|} \hline \text{Year} & \text{Consumer Price Index (CPI)} \\ \hline 2020 & 100.0 \\ \hline 2021 & 108.0 \\ \hline 2022 & 112.0 \\ \hline 2023 & 110.0 \\ \hline \end{array} Year2020202120222023Consumer Price Index (CPI)100.0108.0112.0110.0Which of the following statements correctly describes the macroeconomic conditions of this economy?
The economy experienced deflation between 2021 and 2022, followed by disinflation between 2022 and 2023.
The economy experienced disinflation between 2021 and 2022, followed by deflation between 2022 and 2023.
The economy experienced disinflation between 2020 and 2021, followed by deflation between 2021 and 2022.
The economy experienced deflation throughout the entire period from 2021 to 2023.
