[s] When the consumer price index falls, the typical family has to spend fewer d

Question

[s] When the consumer price index falls, the typical family has to spend fewer dollars to maintain the same standard of living. economy' s overall price level is rising. which to choose, and this in turn increases the cost of maintaining the 16) Economists use the term inflation to describe a situation in which the 17] When a new good is introduced, consumers have more variety from same level of economic well-being. [8] The real interest rate is the interest rate corrected for inflation. 9] Like physical capital, human capital is a produced factor of production.

Explanation / Answer

5) True, because fall in price level implies the decline in the value of the consumer basket i.ee goods are cheaper now.

6) True, because inflation is the persistent increase in the price level in the economy.

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.