Which of the Following Situations Generally Exists When Deflation Occurs

question 32

Multiple Choice

Which of the following situations generally exists when deflation occurs?

• A)Inflation and unemployment are both increasing.
• B)Inflation and unemployment are both decreasing.
• C)The price level is decreasing.
• D)The rate of inflation is falling from, for example, 10% to 3%.
• E) The natural rate of unemployment is zero.

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Definitions:

Public Training Programs

Government-sponsored initiatives designed to enhance the skills and employability of the workforce.

Private Market

A marketplace where transactions are made directly between two parties without government intervention, typically involving private property or assets.

Public Training Programs

Government-sponsored initiatives designed to enhance the skills and employability of individuals, often aimed at reducing unemployment or addressing skill shortages in the economy.

Frictional Unemployment

The short-term unemployment arising from the process of matching workers with jobs, often seen as a normal part of labor market functioning.