When the Overall Price Level of Consumer Goods Goes Up

question 1

Multiple Choice

When the overall price level of consumer goods goes up, we have _____; when they go down, we have _____.

• A) deflation / inflation
• B) price stability / inflation
• C) inflation / deflation
• D) price stability / depression

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Definitions:

Ration Coupons

Documents or certificates that allow the holder to purchase a certain amount of a product, used especially during shortages to ensure fair distribution.

Government-mandated Increase

A requirement imposed by the government that results in a rise, often relating to wages, prices, or taxes.

Demand and Supply Curves

Graphs used in economics to illustrate the relationship between how much of a good or service is desired by buyers (demand) and how much is available from suppliers (supply) at various prices.

Product Market

A market in which products are sold by firms and bought by households.