The diagram illustrates how an economy’s inflation rate changed across 4 years. What occurred to the overall price level during those 4 years?
- Ayear 1 constant; year 2 constant; year 3 fell; year 4 constant
- Byear 1 rose; year 2 constant; year 3 fell; year 4 fell
- Cyear 1 rose; year 2 rose; year 3 rose; year 4 constant
- Dyear 1 rose; year 2 rose; year 3 rose; year 4 fell