When Inflation Causes Relative-Price Variability

question 63

Multiple Choice

When inflation causes relative-price variability,

• A)consumer decisions are distorted and the ability of markets to efficiently allocate factors of production is impaired.
• B)consumer decisions are distorted,but markets are still able to efficiently allocate factors of production.
• C)consumer decisions are not distorted,but the ability of markets to efficiently allocate factors of production is impaired.
• D)consumer decisions are not distorted and markets are still able to efficiently allocate factors of production.

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Definitions:

Social Significance

The importance or meaning of something within society or a specific community, influencing norms, behaviors, and values.

Social Identity

A person's sense of who they are based on their group membership(s), including nationality, ethnicity, religious affiliation, and social class.

Sense of Stability

The feeling of consistency, security, and confidence in one's life or environment.

Daily Rhythm

The natural cycle of physical, mental, and behavioral changes that the body goes through in a 24-hour period, influenced by light and darkness in an organism's environment.