During a certain four-year period, the consumer price index (CPI) increased by 30%, but during the next four-year period, it increased by only 10%. Which of these conditions must have existed during the second four-year period?

Question

mhanifa · Answer

What are the conditions?

SmokeyBrown · Answer

Hi and welcome to QuestionCove!
Based on a quick internet search, I found these four "conditions" as answer choices:
A. Deflation
B. Depression
C. Inflation
D. Recession
The rate of increase of the CPI during the second 4-year period was lower than the rate of increase of CPI during the first 4-year period. Since CPI is a direct measure of inflation, the fact that CPI increases less over the second 4-year period would either be considered "deflation" or at the very least a decrease in "inflation". I do not know enough about finances to distinguish the two; what do you think?

In the future, please be sure to include all of the necessary information with a question to make it easy for us to help you find the answer, including answer choices for questions like these.