If This Year's Price Level Exceeds Last Year's

question 167

Multiple Choice

If this year's price level exceeds last year's,

• A) the inflation rate between these years has been positive.
• B) deflation is occurring.
• C) no relative price changes are occurring.
• D) the inflation rate is accelerating.

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Definitions:

Self-Serving Bias

Underestimates internal factors and overestimates external factors as influences on someone’s behavior.

Fundamental Attribution Error

The tendency to attribute others' actions to their character or personality, while attributing one's own behaviors to situational factors.

Performance Problems

Issues or difficulties that negatively affect an individual's or organization's ability to achieve objectives or maintain standards.

Projection

A defense mechanism in which an individual attributes their own undesired thoughts, feelings, or motivations to someone else.