Deflation Results in Ever-Decreasing Prices, Creating a Positive Result for Consumers

question 88

True/False

Deflation results in ever-decreasing prices, creating a positive result for consumers, but both put pressure to lower costs on everyone in the supply chain.

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Definitions:

Marginal Productivity Theory

An economic theory stating that the amount of pay or wages a worker receives is directly related to their contribution to the output or productivity.

Income Disparities

The uneven distribution of income within a population, often leading to social and economic inequality.

Median Earnings

The middle value of earnings in a group, where half earn more and half earn less, often used as a standard of comparison.

Labor Market

The supply and demand for labor, where employers find employees and individuals find jobs.