What Does the Classical Theory of Inflation Try to Explain

question 56

Multiple Choice

What does the classical theory of inflation try to explain?

• A) changes in relative prices in the economy determined by factors other than inflation
• B) the effect of inflation on economic growth and political stability
• C) the short-run determinants of the price level and the inflation rate
• D) the long-run determinants of the price level and the inflation rate

---

Definitions:

Gender Biased

Holding or showing prejudice, stereotypes, or favoritism towards one gender over others.

Intellectual Disability

"A condition of limited mental ability in which an individual has a low IQ, usually below 70 on a traditional intelligence test, and has difficulty adapting to everyday life."

Limited Mental Ability

A state or condition where an individual's cognitive functions are below average and restrict daily activities and learning capacity.

Everyday Life

Pertains to daily activities, routines, behaviors, and interactions across various contexts and environments.