During a certain five-year period, the consumer price index (CPI) increased by 40%. But during the next five-year period, it increased by only 20%. Which of these conditions must have existed during the second five-year period? A. Recession B. Inflation C. Deflation D. Depression

Answer:Option B : Inflation is correct.Step-by-step explanation:During a certain five year period the CPI increased by 40% but next five years it increased by only 20%.First we need to know what is these terms :A. Recession: It is generally identified by fall in GDP (Gross Domestic Products) in two successful quarters.B. Inflation: Inflation is basically rise in prices, where CPI increases.C. Deflation : Reduction of general level of prices in economy.D. Depression : Depression is defined as severe and prolonged recession.So this situation of second five year period is called inflation where CPI increases by 20% less in comparison of earlier.