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If Relative Prices Change,then the Inflation Rate Must Change

question 70

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If relative prices change,then the inflation rate must change.


Definitions:

Drive-Reduction Theory

A theory of motivation proposing that the primary purpose of behavior is the reduction of drives, which are state of tension or arousal caused by biological or physiological needs.

Homeostatic

Pertaining to homeostasis, the process by which a steady state of internal conditions is maintained in a living organism despite external changes.

Tension

Tension refers to a state of mental or emotional strain or stress that arises from demanding circumstances.

Primary Drives

Basic, biological urges or needs, such as hunger and thirst, that motivate behavior.

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