ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONETARY POLICY

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

This year, when Bonnie arrives at the country store mentioned in the previous question, she discovers that the pies cost $1 more than they did the previous year. Bonnie is noticing what?

A	price ceiling
B	price floor
C	inflation
D	stagflation

Explanation:

Detailed explanation-1: -When the average price level increases by 10 percent in a given year, which of the following must increase by 10 percent for real output to remain constant? inflation and unemployment.

Detailed explanation-2: -A contraction generally occurs after the business cycle peaks, but before it becomes a trough. According to most economists, when a country’s real gross domestic product (GDP)-the most-watched indicator of economic activity-has declined for two or more consecutive quarters, then a recession has occurred.

Detailed explanation-3: -Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year.

Detailed explanation-4: -Answer and Explanation: The correct option is c. The GDP deflator.

There is 1 question to complete.