Inflation Is

question 12

Multiple Choice

Inflation is:

• A) sustained decreases in the total prices of all goods and services.
• B) sustained decreases in the average prices of all goods and services.
• C) sustained increases in the average prices of all goods and services.
• D) sustained increases in the total prices of all goods and services.

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Definitions:

Inverse Supply

Represents the relationship between the price of a good and the quantity of the good that producers are willing to supply, shown as the price as a function of quantity.

Curve

In general, a smoothly flowing continuous line or surface that bends without angles.

Inverse Demand Function

A mathematical model that expresses price as a function of quantity demanded, showing how price varies with changes in demand.

Coffee

A beverage made from the roasted and ground seeds of the tropical evergreen coffee plant, consumed worldwide for its stimulating effects.