To Economists, Inflation Means All of the Following Except

question 4

Multiple Choice

To economists, inflation means all of the following except:

• A)A one-time increase in the price level
• B)A sustained increase in the price level
• C)A continually rising price level
• D)Temporary or permanent changes in a continuously rising price level

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Definitions:

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the coming fiscal year, such as buildings, machinery, and equipment.

Direct Method

An approach to preparing the cash flow statement that lists actual cash inflows and outflows from operating activities.

Operating Activities

The day-to-day actions and transactions that relate to the primary operations of a business, such as sales and purchasing.

Cash Payments

Cash payments refer to transactions where cash is transferred from one party to another, typically as a method of settling debts or paying for goods and services.