If There Are Only Two Goods in the Economy, One

question 95

Multiple Choice

If there are only two goods in the economy, one whose price rises by 3% and one by 5%, it is possible that inflation is:

• A)3%
• B)4%
• C)5%.
• D)7%

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Definitions:

Final Surrender

The act of officially ending conflict by conceding defeat, often marked by the signing of a document or public declaration, signaling the cessation of hostilities.

Civil War

A war between citizens of the same country, famously referring to the American Civil War from 1861 to 1865, which was fought over the issues of states' rights and slavery.

April, 1865

A significant month during the American Civil War, marked by the surrender of Confederate General Robert E. Lee, effectively ending the war.

Election of 1860

The 19th presidential election in the United States, resulting in Abraham Lincoln's victory, which precipitated the American Civil War.