Which of the following is a valid difference between deflation and disinflation?
a. Deflation is a fall in average price levels, but disinflation is a reduced rate of inflation
b. Disinflation is a fall in average price levels, but deflation is a reduced rate of inflation.
c. Disinflation is a significant rise in average price levels, but deflation is a reduced rate of inflation.
d. Disinflation is a fall in average price levels, but deflation is a significant rise in average price levels.
a
You might also like to view...
When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation, such policy is
A. automatic fiscal policy. B. active monetary policy. C. active federal policy. D. discretionary fiscal policy.
Natural monopolies are the natural result of:
A. competition in markets where economies of scale exist over the relevant range of output. B. geographical happenstance. C. fierce competition from firms in a market. D. government regulations intended to encourage competition.
The idea that the interaction of the multiplier and accelerator alone generates business cycles supports the view that the economy is
a. dependent on external shocks, such as housing booms, to stimulate investment which triggers the economy into a cycle b. always moving toward its equilibrium position, albeit not without going through a cyclical path c. always at full employment because the interaction is a chronic stimulant to the economy d. always stable, closely following the trend line of economic growth e. inherently unstable
When you make a routine, everyday decision it is called
a. habit b. programmed c. nonprogrammed d. geocentric