Suppose That the Price Level Was 100 in 2008, 110

question 288

Multiple Choice

Suppose that the price level was 100 in 2008, 110 in 2009, and 130 in 2010. Over these three years,

• A) prices were stable.
• B) deflation occurred at an accelerating rate.
• C) the inflation rate was positive and accelerating.
• D) the inflation rate was positive but slowing.

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Definitions:

Vividly Imagines

Refers to the ability to create intense, clear, and detailed images in one’s mind.

Placebo Effect

The beneficial effect on a person's health that arises from the person's expectations rather than from the actual treatment.

Spontaneous Recovery

A phenomenon in classical conditioning where a previously extinguished response re-emerges after a period of no exposure to the conditioned stimulus.

Overestimate

Assessing something as more significant, valuable, or numerous than it actually is.