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:

Nitrogen

A chemical element with the symbol N and atomic number 7, essential for all living organisms as it constitutes a major component of amino acids and nucleic acids.

Biogeochemical Cycles

The circulation of substances through living organisms from or to the environment.

Gaseous

Relating to or having the characteristics of a gas, a state of matter that is without definite shape or volume.

Sedimentary

Pertaining to rocks formed from sediment accumulated over time, usually in water, through the process of compaction and cementation.