Inflation Is

question 106

Multiple Choice

Inflation is

• A)a rise in the value of money
• B)a decline in nominal income
• C)a sustained increase in the price level
• D)a general reduction in prices
• E)an economic problem only for the retired population

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Definitions:

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP by accounting for inflation.

Real GDP

Real GDP is the total value of all goods and services produced in a country, adjusted for inflation or deflation.

Real GDP

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices, to reveal the true growth rate.

Intermediate Good

A product used to produce a final good or finished product, also known as a semi-finished product.