-Use the Above Figure

question 121

Multiple Choice

-Use the above figure. The consumer's choice changes from Y_A to Y_B. Which of the following statements about good Y is true?

• A) price has increased and the quantity demanded has risen..
• B) price has decreased and the quantity demanded has risen.
• C) price has decreased and the quantity demanded has fallen.
• D) price has increased and the quantity demanded has fallen.

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Definitions:

Actual Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, eroding purchasing power.

Unemployment Rate

The unemployment rate is the percentage of the labor force that is jobless and actively seeking employment.

Expected Inflation

The rate at which the general level of prices for goods and services is anticipated to rise over a specified period.

Actual Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, as it is currently being measured or experienced in the economy.