What does a 2 percent annual inflation rate mean? a. There is 2 percent more mon

Question

What does a 2 percent annual inflation rate mean?
a. There is 2 percent more money in circulation than the year before. b. Wages increase by 2 percent each year. c. On average, a dollar buys 2 percent fewer goods and services than it did the year before. d. On average, a dollar buys 2 percent more goods and services than it did the year before. What does a 2 percent annual inflation rate mean?
a. There is 2 percent more money in circulation than the year before. b. Wages increase by 2 percent each year. c. On average, a dollar buys 2 percent fewer goods and services than it did the year before. d. On average, a dollar buys 2 percent more goods and services than it did the year before. What does a 2 percent annual inflation rate mean?
a. There is 2 percent more money in circulation than the year before. b. Wages increase by 2 percent each year. c. On average, a dollar buys 2 percent fewer goods and services than it did the year before. d. On average, a dollar buys 2 percent more goods and services than it did the year before.

Explanation / Answer

Inflation means increase of price of goods and services and reduce the purchasing power of money.
Inflation calculated on single productwise it can be calculated on total productwise.
Hence in the given case Answer is C.On average Dollar buys 2% less goods and services than it did they before

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

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