John paid $300 in energy bill last quarter and $300 again in energy bill this quarter. Inflation is the increase in the price of goods and services.
Under a condition of positive inflation of +0.7%, ignoring all other factors, the energy bill this quarter is Blank 1 Question 8 unfavourablefavourableindifferent for John because the $300 paid this quarter should be Blank 2 Question 8 higher thanthe same aslower than the $300 paid last quarter.
Under a condition of negative inflation of -0.7%, ignoring all other factors, the energy bill this quarter is Blank 3 Question 8 indifferentfavourableunfavourable for John because the $300 paid this quarter should be Blank 4 Question 8 lower thanhigher thanthe same as the $300 paid last quarter.