If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent.

a) true

b) false

The given statement " If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent " is TRUE

Explanation:

Though prices doubled during the 23 years, the average annual inflation rate during that time could be inferred by approximately 3 percent.

The average inflation rate in the USA has been 3% over the last 100 years. That said, in measuring shorter periods starting in the 1950s, the average rates are much higher.

Many financial experts working with pending pensioners emphasize the importance of contributing to pension scheming an average inflation rate. Since inflation will reduce the value of savings considerably, it is important to determine how and when this powerful economic phenomenon will affect the savings.