Under Credit Money, Prices Automatically Fall in a Recession

question 31

True/False

Under credit money, prices automatically fall in a recession.

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Definitions:

Real GDP

Real Gross Domestic Product, indicating the total value of all produced goods and services in an economy for a year, adjusted to account for inflation, thereby showing true economic value.

Price Level

Calculating the average price across every good and service in the economy's production.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy in a year, used to deflate or adjust GDP for inflation.

GDP Deflator

An indicator that measures the pricing of all new, domestically made, final goods and services in an economy.