Increased production, but not increased inflation, will result in higher:

Refer to Figure 4-3. What area represents the deadweight loss at the equilibrium price of P1?

A) C + E B) C + E + H C) G + H D) There is no deadweight loss at the price of P1.

Inflation is defined as

a. a period of rising productivity in the economy. b. a period of rising income in the economy. c. an increase in the overall level of output in the economy. d. an increase in the overall level of prices in the economy.