The Inflation Rate Is the

question 27

Multiple Choice

The inflation rate is the

• A)absolute change in real GDP from one period to another.
• B)percentage change in real GDP from one period to another.
• C)absolute change in the price level from one period to another.
• D)percentage change in the price level from one period to another.

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Definitions:

Price Elastic

A measure of how much the quantity demanded of a good responds to a change in the price of that good. It indicates the sensitivity of consumers to price changes.

Total Revenue

The total income received by a firm from the sale of its products or services before any expenses are deducted.

Total Revenue

The overall revenue a business earns from sales of goods or provision of services throughout a given timeframe.

Price Falls

Occurs when the market price of a good or service decreases over time.