A Major Element of the Concepts of Inflation and Deflation

question 53

Multiple Choice

A major element of the concepts of inflation and deflation is

• A) the idea that price changes are measured daily.
• B) their dependence on average rather than individual prices.
• C) the requirement that ALL prices must be moving in the same direction.
• D) each household's willingness to report what they pay for goods and services each month.

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Definitions:

Consumption

The use of goods and services by households or individuals for personal satisfaction or to fulfill needs.

Mercedes

A German global automobile marque known for luxury vehicles, buses, coaches, and trucks.

Income

Regularly received financial returns from participation in work or through the investment of capital.

Buicks

A brand of automobiles produced by the American automotive manufacturer General Motors (GM), known for its range of sedans, SUVs, and crossovers.