Explain your answer. No, it is extremes of price change up or down which seem to be attached to Bad times and relatively small rise in prices that seem to be part of the Good times. Explain your choice. Read pages 303 - 304 to help you explain. Low inflation takes the guesswork out of planning for purchasing and investing and preparing for the future.
Inflation normally results from either demand pull or cost push.
Find the two highest and most extended periods of inflation on the chart. Identify them and state whether you think each resulted from demand pull or cost push. WW I, high inflation as a result of demand pull because of sales of war materials. 1970's Oil Crisis, high inflation as a result of cost push because rising oil prices affected many products. In 1975 The Canadian Government established the Anti-Inflation Board to regulate wages and prices.