In China, Suppose That the Price Level Was 100 in 2007

question 355

Multiple Choice

In China, suppose that the price level was 100 in 2007, 110 in 2008, 120 in 2009, and 130 in 2011. Over these three years,

• A) the inflation rate was positive.
• B) prices were stable.
• C) inflation did not occur.
• D) the inflation rate accelerated.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Market Concentration

The extent to which a small number of firms dominate a particular market, often measured by the concentration ratio or Herfindahl-Hirschman Index.

Homogenous Marketing

A marketing strategy where a company treats the market as a uniform entity by offering the same marketing mix to all consumers.