If All Prices Experience an Increase of 4 Percent in One

question 89

Multiple Choice

If all prices experience an increase of 4 percent in one year, which of the following is true?

• A)The rate of inflation for that year is 4 percent.
• B)The relative prices of all goods went up by 4 percent in that year.
• C)We cannot determine if there is inflation or not.
• D)The economy is likely to experience deflation in the near future.

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Definitions:

Decreased Self-Regulation

A reduction in one's ability to control or manage their emotions, desires, or actions effectively.

Increased Hunger

Describes a physiological state where there is an enhanced desire or need to consume food.

Cognitive Tasks

Mental activities that require thinking, processing, and understanding, such as problem-solving, decision-making, and memory recall.

Social Cues

Nonverbal indicators that guide social interactions, such as facial expressions, body language, and tone of voice.