Which of the following statements is NOT true about inflation?

A) Inflation is a sustained increase in the average prices of goods in the economy.
B) During an inflationary period, the prices of some goods will increase while the price of some goods will decrease.
C) When there is inflation, the purchasing power of a dollar decreases.
D) During an inflationary period, the prices of all goods will increase.


D

Economics

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For markets to work well, there must be

a. market power. b. a central planner. c. property rights. d. abundant, not scarce, resources.

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The short run is a period of time during which _____

Fill in the blank(s) with the appropriate word(s).

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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline

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