A rise in absolute prices guarantees that relative prices will rise as well.

Name: A rise in absolute prices guarantees that relative prices will rise as well.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Absolute prices refer to the price level of all goods and services, while relative prices compare the price of one good or service to another. A rise in absolute prices (inflation) does not guarantee that relative prices will rise, as relative prices depend on how the prices of individual goods and services change in relation to each other.

A Rise in Absolute Prices Guarantees That Relative Prices Will