Which of the Following Will Result in Secular Deflation

question 258

Multiple Choice

Which of the following will result in secular deflation?

• A) a one-time rightward shift of the aggregate demand curve
• B) continuous rightward shifts of the aggregate demand curve
• C) a one-time rightward shift of the long-run aggregate supply curve
• D) continuous rightward shifts of the long-run aggregate supply curve

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Definitions:

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and easy entry and exit from the market.

Nonprice Competition

A marketing strategy where companies attract customers through methods other than price, such as quality of product, service, or brand image.

Pure Competition

A market condition characterized by a large number of small firms, identical products, and free entry and exit, leading to price-taking behavior.

Product Differentiation

A marketing strategy that businesses use to distinguish their products from similar offerings on the market.