A Characteristic of the Inflation Rate Is That ________

question 29

Multiple Choice

A characteristic of the inflation rate is that ________.

• A)it typically goes down in a boom
• B)it typically goes up in a recession
• C)it is a lagging indicator
• D)all of the above
• E)none of the above

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Definitions:

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are perfect substitutes.

Long Run

A period where all inputs or factors of production can be varied, allowing full adjustment to changes in the market or economy.

Short Run

A period in economics where at least one input is fixed and cannot be changed by the firm.

Market Price

The price at which a good or service is offered in the marketplace, determined by supply and demand dynamics.