All Else Equal, an Increase in the Rate of Inflation

question 138

Multiple Choice

All else equal, an increase in the rate of inflation ________ planned spending and ________ short-run equilibrium output.

• A)increases; increases
• B)decreases; increases
• C)increases; decreases
• D)decreases; decreases

---

Definitions:

Two-part Tariff

A two-part tariff is a pricing strategy involving a fixed fee plus a variable usage rate, commonly used in utilities and services to cover both fixed and variable costs.

Access Charge

An access charge is a fee paid by telecommunications companies to use the network infrastructure of another company.

Hourly Rental Rate

The charge applied for renting a service or product by the hour.

X-box Video Game Systems

A brand of home video game consoles created and owned by Microsoft, known for its advanced graphics and powerful processing capabilities.