Figure 26-8 on page 682 reports the inflation rate from 1960 to 2008. As this chapter states, inflation continues to be a major factor in economic policy. Get the monthly data from 1960 to 2009 on the Consumer Price Index (CANSIM series V41690973) from the Textbook Resources area of the MyEconLab.

Figure 26-8

a. Graph these data and compare them to Figure 26-8.

b. Has inflation increased or decreased since the end of 2008?

c. When was inflation at its highest? When was inflation at its lowest?

d. Have we ever had a period of deflation? If so, when?

e. Have we ever had a period of hyperinflation? If so, when?

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BON 1962 1964 1966 1968 1970 1972. 1974 1976 1978. 1980. 1982) 1984 1986 1988. 1990 1992 1994. 1996 Inflation Rate, Money Growth Rate(%) ON www 1998. 2000 2002. 2004. 2006 8 NN Money Growth (M1) Two Years Earlier Inflation Rate