When There Is No Deflation or Inflation

question 35

Multiple Choice

When there is no deflation or inflation,

• A)Prices of all goods change by the same percentage.
• B)Relative prices remain unchanged.
• C)Average prices do not change.
• D)Full employment is achieveD.Some prices may rise or fall,but on average prices are constant.

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Definitions:

Coconuts

Tropical fruits with a hard shell, edible white flesh, and clear liquid inside, often found in coastal regions.

Factor Of Production

An input used in the creation of a good or service; these include labor, capital, land, and entrepreneurship.

Factor Market

The factor market is where services of the factors of production (such as labor, land, and capital) are bought and sold.

Lunch

A meal typically eaten in the middle of the day, between breakfast and dinner.