Question

1.

theoretically possible that while GDP is rising, the standard of living could be falling if_____

Select the correct answer below.

factors that are included in are inaccurate or miscalculated

factors that are not included in GDP are improving

factors that are not included in GDP are worsening

factors that are not included in GDP are improving but cannot be measured

2.

Another term for deflation is

Select the correct answer below:

Oinverse inflation

negative inflation

opposite inflation

uninflation

3.

Which two of the following are ways that firms can make money from Inflation?

Select all that apply :

holding lots of cash

paying wages as late as possible

by paying bills as late as possible

all of the above

Answer 1

factors that are not included in the GDP are worsening

Factors such as environment degradation, human health and other factors can be worsening which are not included in the GDP can cause standard of living to fall even when GDP rises.

Negative inflation

Deflation is fall in prices of general goods and services or negative inflation.

paying wages as late as possible

by paying bills as late as possible

That way, they will be paying the same amount of money due but now the value of money has decreased so this way can a firm can technically make money out of inflation.