Question : Directions: Study the following bar graph and answer the question. The bar graph gives the annual rates of inflation in percentage for 1975 and 1987.
Comparing the figures for the USA vis-à-vis the developed nations, it can be concluded that:
Option 1: USA had better control of inflation
Option 2: Developed nations had better control of inflation
Option 3: The inflation rate continues to be the same for the USA and developed nations
Option 4: No conclusions can be drawn
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Correct Answer: Developed nations had better control of inflation
Solution :
For the Developed nations,
The change in the rate of inflation in the developed nations = $\frac{14.2-11.8}{11.8}×100$
The change in the rate of inflation in the developed nations = 20.34%
For the USA,
The change in the rate of inflation in the USA = $\frac{12.7-10.3}{10.3}×100$
The change in the rate of inflation in the USA = 23.3%
Hence, the correct answer is 'Developed nations had better control of inflation'.
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