Ajmal’s grandfather tells him that 40 years ago when he used to go to Oman cinema to watch a movie with a packet of popcorn for just 3 baisa in his age, whereas the cost of goods and services as shown in the image has increased over a period of time. Hence, which of the statement is valid or correct about inflation: Statement I: With too much money sloshing around (irregular), prices skyrocket is inflation. Statement II: This kind of situation occurs when demand increases and money value decreases. Statement III: It happens in developed countries such as U.S and U.K, where the budget is surplus. a. Only statement II & III are correct b. Only statement I & III are correct c. Only statement I & II is correct d. None of the statements are correct
Ajmal’s grandfather tells him that 40 years ago when he used to go to Oman cinema to watch a movie with a packet of popcorn for just 3 baisa in his age, whereas the cost of goods and services as shown in the image has increased over a period of time. Hence, which of the statement is valid or correct about inflation: Statement I: With too much money sloshing around (irregular), prices skyrocket is inflation. Statement II: This kind of situation occurs when demand increases and money value decreases. Statement III: It happens in developed countries such as U.S and U.K, where the budget is surplus. a. Only statement II & III are correct b. Only statement I & III are correct c. Only statement I & II is correct d. None of the statements are correct
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q50
Ajmal’s grandfather tells him that 40 years ago when he used to go to Oman cinema to watch a movie with a packet of popcorn for just 3 baisa in his age, whereas the cost of goods and services as shown in the image has increased over a period of time. Hence, which of the statement is valid or correct about inflation:
Statement I: With too much money sloshing around (irregular),
Statement II: This kind of situation occurs when
Statement III: It happens in developed countries such as U.S and U.K, where the budget is surplus.
a.
Only statement II & III are correct
b.
Only statement I & III are correct
c.
Only statement I & II is correct
d.
None of the statements are correct
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