Inflation is defined as:
a) An increase in the price of expensive items, such as cars.
b) An increase in relative prices.
c) An increase in the average level of prices.
d) The level of prices at full-employment.
Answer: c) An increase in the average level of prices.
Economics
You might also like to view...
Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift outward from AA to BB in Figure 2-2?
a. a decrease in the labor force of the country b. a sudden change in consumer preferences for more fish and less breadfruit c. a major technological advance d. a decrease in the capital stock
Economics
Which of the following policies is the government most inclined to use when faced with a positive externality?
a. taxation b. permits c. subsidies d. usage fees
Economics