A Potential Cause of Stagflation Is

question 60

Multiple Choice

A potential cause of stagflation is

• A)agricultural surpluses.
• B)declining productivity.
• C)improving labor productivity.
• D)a rise in the value of the dollar.

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Definitions:

Average Total Cost

The cost per unit of output, calculated by dividing the total cost of production by the quantity of output.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.

Perfect Competitor

A theoretical market structure where numerous small firms compete against each other without having any significant market power.

Output

The total amount of goods and services produced by an economy or a firm.