When Inflation Occurs

question 40

Multiple Choice

When inflation occurs:

• A) All prices are rising
• B) Each dollar of income will buy more output than before
• C) The purchasing power of money increases
• D) The purchasing power of money decreases

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Definitions:

Customs

The official department that administers and collects the duties levied by a government on imported goods, as well as the traditions and accepted practices within a society.

National Industrial Recovery Act

A law passed in 1933 as part of the U.S. New Deal to stimulate economic recovery, establish fair competition, and reduce unemployment.

Unconstitutional

An action or legislative act that is deemed to be in violation of the constitution of a country.

Labor Unions

Organizations formed by workers to protect their rights and interests through collective bargaining with employers.