A Decrease in the General (Average)price Level of Goods and Services

question 38

Multiple Choice

A decrease in the general (average) price level of goods and services in the economy is known as:

• A)inflation.
• B)deflation.
• C)stagflation.
• D)reflation.

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Definitions:

Price of a Book

The amount of money charged for a book, determined by factors like publishing costs, author royalties, and market demands.

Budget Constraint

A restriction on the possible combinations of goods and services an individual can afford to buy given their income and the prices of the goods.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at various prices.

Income

Income refers to the financial earnings someone acquires regularly either from performing work or making investments.