Inflation Necessarily Occurs When

question 120

Multiple Choice

Inflation necessarily occurs when

• A) the price of gasoline rises.
• B) a greater number of goods increase in price compared to the number of goods that undergo a price decrease.
• C) the overall price level,such as the consumer price index (CPI),rises.
• D) there is an increase in the rate of change in the price level.
• E) the price of at least one good,but possibly more than one good,in the economy increases.

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Definitions:

Self-Fulfilling Prophecy

A forecast that becomes a reality because of the mutual influence between how one thinks and acts, leading to its own fulfillment.

Postdecisional Dissonance

The psychological discomfort one feels after making a difficult decision, often leading to regret or rationalization of the choice.

Insufficient Justification Effect

A phenomenon where individuals modify their attitudes or beliefs to align with their actions, especially when those actions lack adequate external justification.

Fundamental Attribution Error

The tendency to overemphasize internal characteristics for someone else's behavior and underemphasize situational factors.