When Does 'Inflation' Occur

question 132

Multiple Choice

When does 'inflation' occur?

• A) When the value of money is rising
• B) When the value of real GDP decreases
• C) When the value of real GDP increases
• D) When the general price level is rising

---

Definitions:

External Validity

The extent to which the results of a study can be generalized or applied to other settings, populations, or times.

Internal Validity

The extent to which a study is able to produce evidence that its results are caused by the variables it is testing, free from external influence.

Correlational Method

A statistical technique used to determine the degree to which two variables are related without inferring a cause-and-effect relationship.

Confounding Variable

An extraneous variable in an experimental design that correlates with both the dependent and independent variables, potentially leading to a false assumption of causality.