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AP® Macroeconomics

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Cotton and Flour Prices Are Increasing

APMACR-VCLG70

In Country X, the prices of cotton and flour have increased by 10% over the past year.

Which of the following MUST be occurring in Country X?

A

Country X is experiencing inflation.

B

Country X is experiencing deflation.

C

Cotton and flour are more expensive in Country X now than they used to be.

D

Cotton and flour are less expensive in Country X now than they used to be.

E

Country X is experiencing a higher unemployment rate than they have had in the past.