In General,if a Consumer Good Is Produced Domestically and Consumed

question 126

Multiple Choice

In general,if a consumer good is produced domestically and consumed domestically,a decrease in its price will have which of the following effects?

• A)The consumer price index will decrease relatively more than will the GDP deflator.
• B)The consumer price index and the GDP deflator will decrease by the same amount.
• C)The consumer price index will decrease relatively less than will the GDP deflator.
• D)One cannot generalize about the decrease in the consumer price index relative to the decrease in the GDP deflator.

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Definitions:

Disgust

An emotional response of revulsion to something considered offensive, distasteful, or unpleasant.

Jealousy

An emotional state that arises from perceiving a threat to a valued relationship or possession, often accompanied by feelings of insecurity and fear of loss.

Cognitive Appraisal

The process of evaluating a situation or event for its significance to personal wellbeing, influencing emotional and behavioral responses.

Lazarus Theory

A concept in psychology that suggests emotions are a result of thought processes, and stress arises from an appraisal of a situation that impacts one's well-being.