Which of the Following Is True About Inflation

question 62

Multiple Choice

Which of the following is true about inflation?

• A)Inflation promotes social harmony by uniting people against the government.
• B)Inflation is more damaging if it is unanticipated.
• C)Accurate anticipation of inflation is possible for everyone who is well informed about economic events.
• D)Those who lend money at a rate above the rate of inflation suffer economic losses.
• E)If people accurately anticipate inflation,their actions will prevent it.

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Definitions:

Macroeconomics

The branch of economics that studies overall economic dynamics such as total output, employment levels, and inflation across an entire economy.

Unemployment Rate

A measure of the percentage of the labor force that is jobless and actively seeking employment.

Growth Rate

The percentage increase in the value of a particular variable (such as GDP, population) over a certain period of time, indicating the rate at which it is expanding or declining.

Overall Economy

The comprehensive system of production, distribution, and consumption of goods and services within a country or region.