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Unformatted text preview: inition 8) Deflation is a decrease in A) the price of one item. B) the overall price level. C) the average income level. D) real gross national product. Answer: B Diff: 1 Topic: Inflation Skill: Definition 9) An increase in the overall price level that continues over a significant period of time is A) high inflation. B) sustained recovery. C) sustained inflation. D) super inflation. Answer: C Diff: 1 Topic: Inflation Skill: Definition 10) A price index is A) a measurement showing how the average price of a bundle of goods changes over time. B) a measurement showing the cost of a bundle of goods at a point in time. C) a sustained increase in the overall price level. D) a decrease in the overall price level. Answer: A Diff: 1 Topic: Inflation Skill: Definition Refer to the information provided in Table 7.3 below to answer the questions that follow.
Table 7.3 11) Refer to Table 7.3. Suppose 2006 is the base year. The price index in 2006 is A) 1,000. B) 100. C) 1. D) 10. Answer: B Diff: 2 Topic: Inflation Skill: Analyti...
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