Assume the inflation rate falls from 4 percent to 2 percent. This means that
A. the price level has fallen.
B. the price level is increasing more slowly.
C. the economy is experiencing deflation.
D. real GDP is decreasing.
Answer:B
Assume the inflation rate falls from 4 percent to 2 percent. This means that
A. the price level has fallen. B. the price level is increasing more slowly. C. the economy is experiencing deflation. D. real GDP is decreasing.