Why Are Economists More Interested in Relative Prices Rather Than

question 67

Multiple Choice

Why are economists more interested in relative prices rather than money prices?

• A) because relative prices frequently decline due to deflationary trends
• B) because economists are not concerned with real-world activities, just theoretical models
• C) because relative prices are the actual dollar prices paid by consumers
• D) because what matters is how much the price of a good has changed relative to substitute products

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