If we knew that the price of goods rose, on average, by 5 percent last year and by 4 percent thi

Question

Nick Johnson · Accepted Answer

Step 1: Inflation is defined as a general increase in prices of goods and services in an economy

If we knew that the price of goods rose, on average, by 5 percent last year and by 4 percent this year, we would know • that the inflation rate is falling nothing about the rate of inflation that we are in a stagflation that the inflation rate is rising that we are in a recession