Deflation

question 155

Multiple Choice

Deflation

• A) automatically implies that,on average,everyone is better off because prices have fallen.
• B) is the same as disinflation; it means the rate of inflation has fallen.
• C) will make you better off if your nominal wages fall more slowly than prices.
• D) will make you better off if your nominal wages fall more rapidly than prices.
• E) will make you better off if your real wages fall more rapidly than prices.

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Definitions:

Rhizome

A type of underground stem that grows horizontally, producing roots and shoots at intervals to enable a plant to spread.

Ferns

Non-flowering plants with feather-like leaves that reproduce via spores, lacking seeds and flowers.

Horsetails

A group of vascular plants from the genus Equisetum, known for their reed-like appearance, that reproduce through spores instead of seeds.

Silica

A mineral compound made of silicon and oxygen (SiO2), commonly found in quartz and used in various technologies and construction materials.