An Increase in the Average Level of Prices of Goods

question 107

Multiple Choice

An increase in the average level of prices of goods and services is known as:

• A) Price elevation.
• B) Deflation.
• C) Inflation.
• D) The law of demanD.

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Definitions:

Labor Force

The total number of people employed and unemployed, seeking employment in an economy.

Technology

The application of scientific knowledge for practical purposes, especially in industry, involving the development and use of technical means and their interrelation with life, society, and the environment.

Stock of Capital

The total quantity of physical assets used in the production of goods and services in an economy.

Short-Run Aggregate Supply Curve

A graphical representation showing the relationship between the total supply of goods and services produced by an economy and the price level for those goods and services in the short term.