When the Overall Level of Prices in the Economy Is

question 3

Multiple Choice

When the overall level of prices in the economy is increasing,economists say that the economy is experiencing

• A)economic growth.
• B)stagflation.
• C)inflation.
• D)deflation.

---

Definitions:

Empirical Economics

The branch of economics that analyzes data to understand and explain economic phenomena.

Economic Theories

Systematic frameworks for analyzing economic phenomena, developed to explain and predict economic patterns and behaviors.

Normative Statement

An assertion that expresses a value judgment or opinion about what ought to be, rather than what is empirically verifiable.

Post Hoc

A logical fallacy that assumes a cause-and-effect relationship simply because one event follows another in time.