Periods Experiencing Increase in Price Levels Are Known as Periods

question 102

Multiple Choice

Periods experiencing increase in price levels are known as periods of:

• A) inflation.
• B) recession.
• C) depression.
• D) deflation.

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Definitions:

Recession

A span of transitory economic worsening, seen in lessened trade and industrial efforts, often marked by a fall in GDP for two straight quarters.

MPC

The marginal propensity to consume, which is the proportion of additional income that a consumer spends on goods and services rather than saving it.

Multiplier

In economics, a factor by which a change in spending results in a greater change in national income.

Fiscal Policy

Policies established by the government regarding taxes and expenditures designed to affect the economic environment.