The following table pertains to Shishkaton, an economy in which the typical consumer's basket consists of 15 pounds of prunes and 7 dolls. Year Price of Prunes (Dollars per pound) Price of Dolls (Dollars per toy) 1 12 7 2 10 6 3 8 5 12. Refer to Table 24-2. The inflation rate was a. positive in Year 2 and negative in Year 3. b. negative in Year 2 and positive in Year 3. c. positive in Year 2 and positive in Year 3. d. negative in Year 2 and negative in Year 3.
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Table 24-2
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12. Refer to Table 24-2. The inflation rate was
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Prices are continuously falling from year 1 to year 2 and year 2 to year 3, as seen in the table.
As we can see only the year 1 and 3, Prunes' price drops from $12 to $8, and dolls' price drops from $7 to $5.
But as we can also see that in both continuous years, like year 1 to year 2 and year 2 to year 3, the prices also continued to decline.
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