1. Which of these sound like inflation, which sound like deflation, and which are ambiguous?
Gasoline prices are up 10%, food prices are down 20%, and the prices of most services are up 1–2%.
As some prices have risen but other prices have fallen, there may be overall inflation or deflation. The answer is ambiguous.
Gas prices have doubled, food prices are up 50%, and most services seem to be up 5% or 10%.
As all prices have risen significantly, this sounds like inflation.
Gas prices haven’t changed, food prices are way down, and services have gotten cheaper, too.
As most prices have fallen and others have not changed, this sounds like deflation.