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An Economy in Which Output Has Decreased and Prices Have

question 147

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An economy in which output has decreased and prices have increased would suggest that there has been a:


Definitions:

Constant Returns To Scale

A situation in production where increasing the amount of inputs results in a proportionate increase in the output.

Poorer Grows Faster

An observation in economics that poorer economies tend to grow at a faster rate than richer economies due to the catch-up effect.

Standard Of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in the production process.

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