Back sta Mesa omics 1 2 A Dollar's Worth: Inflation Is Real Questions Which statement is an example of inflation? 000 The average price level of many things you buy decreases over time. The price of a gallon of milk increases by 50 cents in one week. The price of gasoline increases by $1 a gallon after a weather disaster. The average price level of many things you buy increases over time. L 3 Louisa has a savings account that pays interest at an annual percentage rate of 2 percent. The current annual inflation rate is 4 percent. Based on this information, and assuming these rates stay constant in the future, which statement is true? 2