3. Which of these sound like inflation, which sound like deflation, and which are ambiguous? a. Gasoline

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3. Which of these sound like inflation, which sound like deflation, and which are ambiguous?

a. Gasoline prices are up 10%, food prices are down 20%, and the prices of most services are up 1%–2%.

b. Gas prices have doubled, food prices are up 50%, and prices of most services seem to be up 5% or 10%.

c. Gas prices haven’t changed, food prices are way down, and services have gotten cheaper, too.

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Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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