Understanding Inflation Quiz

The rate of increase in the prices of goods per period (correct)

The rate of decrease in the prices of goods per period

The rate of constant prices of goods per period

The rate of fluctuating prices of goods per period

A situation where inflation remains constant over time

A situation where inflation is increasing at a rate of several hundred % per year (correct)

A situation where inflation is decreasing at a rate of several hundred % per year

A situation where inflation fluctuates randomly

When aggregate demand increases at the same rate as the economy produces goods

When aggregate demand decreases faster than the economy can produce goods

When aggregate demand remains constant over time

When aggregate demand increases faster than the economy can produce goods (correct)

<p>Changes in Aggregate Demand (B)</p> Signup and view all the answers

<p>Inflation can make economic decisions meaningless if not considered (A)</p> Signup and view all the answers