1. If a price index is 40 in 1997 and 50 in 1998, the rate of inflation between the two years is _________. 2. Inflation in the United States was higher from 1990 to 2009 than it was from 1970 to...

1. If a price index is 40 in 1997 and 50 in 1998, the rate of inflation between the two years is _________.

2. Inflation in the United States was higher from 1990 to 2009 than it was from 1970 to 1980. _________ (True/ False)

3. Which of the following countries experienced a deflation in the 1990s?

a. United States

b. Japan

c. Canada

3. If the price of a chorizo sausage in 1950 was $0.50 and $1.98 in 2013, the percentage rate of change for the price of a chorizo sausage over this period was _________ percent

4. Calculating an Inflation Rate. A country reports a price index of 50 in 2007 and 65 in 2008. What is the inflation rate between 2007 and 2008?