ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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inflation
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deflation
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consumer price index
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aggregate demand
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Detailed explanation-1: -The correct option is C Inflation. Q. The general price level in an economy decreases during deflation.
Detailed explanation-2: -Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.
Detailed explanation-3: -Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices. Typically, prices rise over time, but prices can also fall (a situation called deflation).
Detailed explanation-4: -When the price level rises in an economy, the average price of all goods and services sold is increasing. Inflation is calculated as the percentage increase in a country’s price level over some period, usually a year. This means that in the period during which the price level increases, inflation is occurring.
Detailed explanation-5: -Inflation is defined as an increase in. average price level. Inflation is measured by an increase in. Consumer Price Index (CPI)