Which of the Following Statements Is True of Inflation

question 125

Multiple Choice

Which of the following statements is true of inflation?

• A) It refers to a decrease in the general price level in an economy.
• B) It refers to a rise in the price level of gasoline.
• C) It refers to a constant general price level in an economy.
• D) It refers to an increase in the average level of prices.

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Definitions:

Total Fixed Cost

The sum of the costs that do not vary with output. They will be incurred as long as a firm continues in business and the assets have alternative uses.

Educational Choices

Refers to selections made regarding educational paths, institutions, or programs based on individual preferences and goals.

Career Choices

The selection of a particular path or profession in which an individual intends to pursue over the course of their employment life.

Earnings

The amount of money that an individual or company receives in return for their labor or investment.