During Periods When the Inflation Rate Fluctuates Widely

question 148

Multiple Choice

During periods when the inflation rate fluctuates widely,

• A) all relative prices increase at the same rate, leaving money prices constant
• B) economic efficiency increases because decision makers pay closer attention to changes in money prices
• C) uncertainty about changes in relative prices causes a decrease in economic efficiency
• D) all money prices increase at the same rate, leaving relative prices constant

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Definitions:

Discrimination

Unequal treatment or bias against individuals or groups based on characteristics such as race, gender, religion, or nationality.

Noncash Transfers

Benefits provided by governments or organizations to individuals that are not in the form of cash, such as food stamps or healthcare services.

Greater Equality

A situation in which disparities in income, wealth, opportunities, and status among individuals or groups are reduced.