The Process of Disinflation Can Involve Some Period of Increased

question 120

Multiple Choice

The process of disinflation can involve some period of increased inflation and reduced output.Economists refer to this as

• A)the sacrifice period.
• B)monetary validation.
• C)the recovery phase.
• D)an inflationary recession.
• E)stagflation.

---

Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices to different customers for the same product or service, based on factors other than the cost of production.

Price Searchers

Sellers who have the ability to control and set prices because their products do not have perfect substitutes.

Marginal Revenue

The additional income that a firm receives from selling one more unit of a good or service.