Author Question: Inflation is A) a decline in the total purchasing power of an economy. B) a decrease in the ... (Read 74 times)

yoroshambo · **on:** Jun 29, 2018

Inflation is

A) a decline in the total purchasing power of an economy.
B) a decrease in the amount of other goods that a unit of money will purchase.
C) a fall in people's real incomes.
D) an increase in the cost of living.
E) all of the above.

Question 2

If the GDP deflator rises from one year to the next, we know that

A) economic growth has occurred.
B) everyone in the economy is at least slightly worse off.
C) real GDP has declined.
D) the amount of double-counting in GDP has increased.
E) the average money price of the goods included in GDP has risen.