Which of the Following Is Consistent with Secular Deflation

question 152

Multiple Choice

Which of the following is consistent with secular deflation?

• A) a persistently decreasing price level caused by several periods of economic growth with stable AD
• B) a persistently increasing price level caused by several periods of economic growth with decreasing AD
• C) a persistently decreasing price level caused by increases in government expenditures
• D) a persistently decreasing price level caused by money being withdrawn from the economy

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Definitions:

Failure Rate

Measures the frequency at which an engineered system or component fails, expressed in failures per unit of time.

Graduation

The act of completing a course of study at an educational institution, usually marked by a ceremony to recognize academic achievement.

Small Businesses

Businesses with limited revenue and number of employees, distinct from medium-sized and large enterprises.

Economy

The system of production, distribution, and consumption of goods and services within a specific geographical area.