A Change in the Average Price Level Is Called ________

question 120

Multiple Choice

A change in the average price level is called ________, while a change in the price of a specific good in comparison with other goods and services is called ________.

• A)a quality adjustment; a substitution bias
• B)a change in a relative price; inflation
• C)inflation; a change in a relative price
• D)a price level adjustment; a quality adjustment

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Definitions:

Cash

A company's liquid assets that are available for immediate use for transactions, including currency and demand deposits.

Basic Accounting Equation

Assets = Liabilities + Owner’s Equity.

Electronic Equipment

Electronic equipment encompasses devices or systems that use electrical power to perform a wide range of functions, including computing, communication, and entertainment.

Accounts Payable

Refers to the amount a company owes to suppliers or vendors for goods and services received but not yet paid for.