'Inflation' Is an Increase in The

question 74

Multiple Choice

'Inflation' is an increase in the:

• A)overall level of economic activity.
• B)rate of growth of GDP.
• C)average hourly wage rate.
• D)general price level in the economy.

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Definitions:

Consumer Surplus

The gap between the total monetary amount consumers are willing to allocate for a product or service and the amount they ultimately allocate.

Willingness to Pay

The highest price a person is willing to pay for a product or service, indicating how much they value it.

Consumer Surplus

The deviation between the cumulative amount consumers are inclined to spend on a good or service and the amount they really spend.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of that good or service consumers are willing and able to purchase, typically downward sloping.