The Sum of the Components of Incomes Is Called

question 180

Multiple Choice

The sum of the components of incomes is called

• A)net domestic product at market prices.
• B)gross domestic product at market prices.
• C)gross domestic product at factor cost.
• D)net domestic product at factor cost.
• E)GNP.

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Definitions:

Hyperinflation

An extremely high and typically accelerating inflation rate, causing a rapid erosion of currency's value.

Deflation

A decrease in the general price level of goods and services, often characterized by the increase in the value of money.

Disinflation

Disinflation is the process of slowing down the rate of inflation, indicating a reduction in the speed at which the general level of prices for goods and services is rising.

Wage-Price Spiral

A macroeconomic concept describing a situation where rising wages lead to increased prices, which in turn lead to demands for higher wages, thus perpetuating inflation.