Which Statement Is TRUE

question 65

Multiple Choice

Which statement is TRUE?

• A) Inflation means an increase in the overall level of prices.
• B) Deflation refers to a decrease in prices only in the energy and transportation sectors.
• C) During inflation most people enjoy an increase in their standard of living even if their wages don't increase.
• D) Inflation was a problem for the first time in the recession of 1929-1933.

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Definitions:

College Graduate

An individual who has completed the required coursework and obtained a degree from a college or university.

Higher Incomes

The segment of earnings that exceed the average or median level of personal or household earnings within a given population.

Income Distribution

Refers to how a nation’s total earnings are spread among its population.

Productive Resources

Assets, materials, or inputs used for the creation of goods or services, including natural resources, human capital, and capital goods.