When there is no deflation or inflation,
A)Prices of all goods change by the same percentage.
B)Relative prices remain unchanged.
C)Average prices do not change.
D)Full employment is achieveD.Some prices may rise or fall,but on average prices are constant.

Question

Quizplus · Accepted Answer

When there is no deflation or inflation, average prices do not change, meaning that the overall level of prices remains constant. However, this does not necessarily mean that all prices remain the same, as some prices may rise or fall while others remain unchanged. Additionally, full employment is not necessarily achieved in this scenario.

When There Is No Deflation or Inflation