We see a continuous fall in percentage the annual inflation rate over those years would decrease.
Question Parameters:
if the price level rose in three consecutive years from 100 to 120 to 140,
Generally the equation for the is mathematically given as
So, annual inflation rate is
x=[(120-100)/100]*100
x= 20%
In the year 3, price level was 140, hence, the inflation rate
y= [(140-120)/120]*100
y= 16.67%.
Since, we see a continuous fall in percentage the annual inflation rate over those years would decrease.
For more information on Arithmetic
https://brainly.com/question/22568180