All Else Being Equal,a Decrease in the Rate of Inflation

question 47

Multiple Choice

All else being equal,a decrease in the rate of inflation ________ planned spending and ________ short-run equilibrium output.

• A) increases;increases
• B) increases;decreases
• C) does not change;does not change
• D) decreases;increases
• E) decreases;decreases

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Definitions:

Constant

A situation or variable in economics that does not change, or a fixed quantity within a particular analysis.

Infinite

A concept or quantity that has no end or limit, often used in mathematics, physics, and discussing concepts with no bounds.

Positive

In economics, it often refers to statements or propositions that can be tested and validated against real-world data, as opposed to normative, which are value-based.

Infinite

A term used to describe a quantity without bounds or end, often used in mathematics and physics to describe an unquantifiably large magnitude.