Consider an economy that produces two goods---beer and beans.
Beer makes up about one-third of the value of goods produced
and beans about two-thirds. During the past year the price of
beans rose by three percent and the price of beer fell by three
percent. The inflation rate in this economy was approximately
1. 0 percent.
2. 1 percent.
3. -1 percent.
4. 1.5 percent.
Choose the correct answer.