(a) Based on the graph above, indicate whether the following statements are True or False.
Statement
The highest inflation rate occurred in 2022 Inflation decreased between 2022 and 2023
The inflation rate in 2025 was the closest to the ECB target rate of 2% There was a positive trend in inflation between 2021 and 2022
(b) Explain how changes in the level of consumer demand can cause inflation TRUE FALSE
(c) The inflation rate decreased from 6.3% to 2.1% from 2023 to 2024. Explain one impact this trend in inflation can have on an individual and our economy.