QUESTION IMAGE
Question
understanding the cpi
changes in the us consumer price index 2006 - 2016
percent change (average)
use the drop - down menus to complete the statements. inflation is a measure of how prices
disinflation occurred
the inflation rate was abc
overall, prices declined decrease increase
Inflation measures the general increase in prices over time. Disinflation occurs when the inflation - rate is positive but decreasing. When the percent change in CPI is negative, overall prices decline.
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Inflation is a measure of how prices increase.
Disinflation occurred when the inflation rate was positive but decreasing (e.g., in some periods between 2011 - 2016 when the CPI percent change was still positive but declining).
The inflation rate was above zero in some periods and below zero in 2009 and 2015.
Overall, prices declined when the percent change in CPI was negative (in 2009 and 2015).