Which of the Following Is True of De?ation

question 70

Multiple Choice

Which of the following is true of de?ation?

• A) De?ation is likely to bene?t the economy because prices have fallen, making goods more affordable.
• B) De?ation raises the real value of debt, making previously incurred debts less affordable.
• C) De?ation refers to a sustained increase in the general price level.
• D) A long period of de?ation is consistent with a high level of employment in the economy.

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Definitions:

Barriers To Entry

Economic, procedural, or regulatory obstacles that prevent new competitors from easily entering an industry or area of business.

Oligopolistic

Pertaining to a market structure where a small number of firms dominate the industry, influencing prices and marketing strategies.

Perfectly Competitive

A market structure characterized by a complete absence of rivalry among the sellers and an infinite number of buyers and sellers, where no single buyer or seller has market power.

Identical Products

Goods that are exactly the same in every feature, quality, and specification, allowing no variation between them.