Which of the Following Statements Is True? Economists Generally Agree

question 22

Multiple Choice

Which of the following statements is true? Economists generally agree that

• A) the rate of inflation in the long run is determined primarily by growth in government spending.
• B) factors other than money growth may influence the inflation rate from one year to the next, but they are not likely to cause sustained inflation.
• C) the primary cause of inflation is increases in the money supply growth that exceed growth increases in aggregate demand.
• D) the major causes of inflation are declining productivity coupled with excessive spending.

Grasp the genetic and environmental factors influencing human behavior and traits.

Comprehend the principles and mechanisms of natural selection and its impact on human development and behavior.

Identify the role of genetic mutations and epigenetic marks in human physiology and behavior.

Recognize the brain's adaptability and the importance of brain plasticity across different stages of life.

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Definitions:

Perfect Competition

A market structure characterized by a complete lack of friction or impediments to the entry of new firms, where all sellers and buyers have access to the same information and no individual entity can influence the market price.

Market Price

The present cost at which a service or asset is available for purchase or sale.

Perfect Competitor

A theoretical market structure where many buyers and sellers exchange identical products, and no single entity can influence the market price.

Long Run

A period in economics during which all factors of production and costs are variable, allowing for the full adjustment to changes.