D) 1988-1990
Explanation:
Due to the continuous decrease of inflation, the period between 1988-1990 shows continued decline in inflation.
Answer:
Option D.
Explanation:
Inflation: Decline in the purchasing power of the currency of a country is known as inflation. It is generally expressed as a percentage at which the average price level of a basket of selected goods and services rises over a period of time in an economy.
Deflation: It represents a decline in the overall price of goods and services. Deflation happens when the rate of inflation falls below 0%.
Formula for inflation is
[tex]Inflation=\dfrac{\text{Current CPI - Initial CPI}}{\text{Initial CPI}}\times 100[/tex]
Continuous deflation over an interval means the graph of CPI continuously decreased over that interval.
From then given graph it is clear that CPI between 1988 - 1990 is continuously decreasing. So, the graph show continuous deflation between 1988-1990.
Therefore, the correct option is D.
