Inflation Necessarily Occurs When

question 56

Multiple Choice

Inflation necessarily occurs when:

• A) the price of gasoline rises.
• B) a greater number of goods increase in price compared to the number of goods that undergo a price decrease.
• C) the overall price level rises.
• D) there is an increase in the rate of change in the price level.
• E) the price of at least one good, but possibly more than one good, in the economy increases.

---

Definitions:

Common Stock

Equity ownership in a corporation, entitling holders to vote at shareholder meetings and to receive dividends.

T-account

A visual representation used in accounting to depict the debit and credit sides of an account.

Debits

Financial transactions representing increases in assets or expenses or decreases in liabilities, equity, and income.

Credits

Entries made in the accounting records to increase liabilities or revenues, or to decrease assets or expenses.