Deflation

question 155

Multiple Choice

Deflation

• A) automatically implies that,on average,everyone is better off because prices have fallen.
• B) is the same as disinflation; it means the rate of inflation has fallen.
• C) will make you better off if your nominal wages fall more slowly than prices.
• D) will make you better off if your nominal wages fall more rapidly than prices.
• E) will make you better off if your real wages fall more rapidly than prices.

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Definitions:

Self-Comparison Bias

The tendency to make favorable comparisons between oneself and others, which can lead to an inflated sense of self-esteem or competence.

Global Self-Esteem

Refers to the overall value that one places on oneself as a person, integrating beliefs and feelings from various aspects of self-concept into a single self-assessment.

Non-Academic Area

Aspects of education or development that don't include formal classroom learning, such as sports, clubs, and personal hobbies.