In what year did inflation become low?

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Multiple Choice

In what year did inflation become low?

Explanation:
Inflation drops when price increases slow down due to weaker demand or slack in the economy. After the 1960–61 recession, demand cooled and price pressures eased, so inflation reached its lowest point in this period. In 1962 the overall rate of price increases was minimal, even as the economy started to recover. That lull is why this year stands out as the low-inflation year. In the surrounding years, inflation rose again as demand strengthened and policies pushed spending and growth, which is why the other years aren’t characterized by the same low inflation.

Inflation drops when price increases slow down due to weaker demand or slack in the economy. After the 1960–61 recession, demand cooled and price pressures eased, so inflation reached its lowest point in this period. In 1962 the overall rate of price increases was minimal, even as the economy started to recover. That lull is why this year stands out as the low-inflation year. In the surrounding years, inflation rose again as demand strengthened and policies pushed spending and growth, which is why the other years aren’t characterized by the same low inflation.

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