An Increase in the Overall Level of Prices in an Economy

question 79

Multiple Choice

An increase in the overall level of prices in an economy is called

• A) growth.
• B) expansion.
• C) inflation.
• D) nominal GDP growth.

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods that can be produced using limited resources to the fullest extent, at a given technology level.

Maximum Combinations

Maximum combinations represent the highest number of product or service bundles that can be produced or offered given a set of resources and technology.

Linear Equation

A mathematical expression that represents a straight line when plotted on a graph, typically in the form y = mx + b.

Vertical Intercept

The point at which a line meets the vertical axis of a graph.