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Which of the Following Statements Is True About Inflation

Question 63

Multiple Choice

Which of the following statements is true about inflation?


A) If all wages rise at the same rate as the price level, then purchasing power is not affected.
B) Increases in the price level are always offset by changes in production.
C) Keeping prices constant is the only way to ensure increasing purchasing power over time.
D) If all prices decline, the purchasing power of everyone declines.

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