Economists Use the Term Inflation to Describe a Situation in Which

question 189

True/False

Economists use the term inflation to describe a situation in which the economy's overall production level is rising.

---

Definitions:

Market System

In this economic structure, supply and demand forces directly influence decisions around investment, production capacity, and distribution methods, with the price points of goods and services being freely determined in a competitive price system.

Expanding Industry

An industry or sector experiencing significant growth in terms of output, sales, or number of participants.

Resource Prices

The costs associated with acquiring raw materials or inputs used in the production of goods and services.

Allocation

The process of assigning resources or goods to various uses or individuals in an economy.