An Increase in the Overall Price Level Is Called

question 54

Multiple Choice

An increase in the overall price level is called

• A)an expansion.
• B)economic growth.
• C)deflation.
• D)a recession.
• E)inflation.

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Definitions:

Product Demand

The desire for a specific good or service supported by the capacity and willingness to purchase it at a given price.

Labor Demand

Labor demand refers to the quantity of labor that employers are willing and able to hire at a given wage rate in a given market.

Price of Paper

The cost at which paper is sold or bought in the market.

Complementary

Pertains to goods or services that are often used together, where an increase in demand for one leads to an increase in demand for the other.