Inflation is a relative change in the prices of goods
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when economists refer to the economy’s price level, they mean
A. The rate of inflation.
B. The price of goods and services relative to consumers' incomes.
C. A general measure of prices of all goods and services.
D. A period of level, or steady, prices.
E. The prices of a specific consumer good.
Which of the following statements about prices and inflation is not correct?
A. The price level measures the average prices of goods and services across the economy.
B. The inflation rate shows the percentage change in prices across periods of time.
C. Prices generally increase at the same rate across most periods of time.
D. Inflation represents a general rise in prices over periods of time.
a. Yen appreciates.b. Dollar appreciates.c. The inflation rate in the United States is higher than the inflation rate in Japan, and there are flexible exchange rates.d. The inflation rate in Japan is higher than the inflation rate in the United States and there are fixed exchange rates.