Deflation Is A(n)

question 196

Multiple Choice

Deflation is a(n) :

• A) decrease in the purchasing power of a unit of money.
• B) appreciation of the nation's currency.
• C) decrease in the average level of prices.
• D) increase in the average level of prices.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, measured by the change in real GDP.

Consumer Goods

Items produced for personal consumption by the general public, including durable goods like vehicles and appliances, as well as non-durable goods such as food and beverages.

Business Firms

Organizations engaged in commercial, industrial, or professional activities, aiming to generate profits.

Production Possibilities Frontier

A graphical representation showing the maximum amount of two goods or services that can be produced within a given set of resources.