Inflation Makes It Difficult to Distinguish Relative Price Changes from Changes

question 2

Multiple Choice

Inflation makes it difficult to distinguish relative price changes from changes in the general level of prices. Consequently, inflation ________ the efficiency of the market system.

• A)increases
• B)decreases
• C)does not change
• D)may either increase or decrease

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Definitions:

Pique Technique

A strategy used in persuasion that aims to capture people's interest by making a unique or unusual request.

Social Influence

The effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behavior.

Social Psychologist

A researcher or practitioner who studies how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Carl Hovland

An American psychologist known for his work on attitude change, communication, and persuasion during the 20th century.