Which of the Following Statements Is True About Inflation

question 60

Multiple Choice

Which of the following statements is true about inflation?

• A) If all wages rise at the same rate as the price level, then purchasing power is not affected.
• B) Increases in the price level are always offset by changes in production.
• C) Keeping prices constant is the only way to ensure increasing purchasing power over time.
• D) If all prices decline, the purchasing power of everyone declines.

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