________ Is an Increase in the Price Level,while _________ Is

question 130

Multiple Choice

________ is an increase in the price level,while _________ is an increase in the price of a good in comparison to other goods and services.

• A) Inflation;hyperinflation
• B) Hyperinflation;inflation
• C) Deflation;inflation
• D) A relative price increase;inflation
• E) Inflation;a relative price increase

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Definitions:

Government Imposes

Actions undertaken by a government to enforce regulations, taxes, or penalties on individuals or organizations.

Binding Price Floor

A price floor set above the equilibrium price, causing a surplus because the quantity supplied exceeds the quantity demanded.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time frame.

Government Policy

The set of laws, guidelines, regulations, and actions adopted by a government to influence economic or social outcomes within the country.