Explanation The economic growth is the increase in the inflation adjusted market value of goods and services in the economy over a time period. The business cycle is a wave-like upward and downward movement of the GDP of the economy which moves from economic drought to boom and back. The inflation in the economy is the abnormal increase in the average price level in the economy. Option (d): The inflation is the process of general increase in the price level and the decrease in the purchasing power of the currency in the economy. The deflation is the period in which the inflation rate in the economy falls. As the inflation rate falls, it will increase the consumer’s purchasing power in the economy. The oil shocks of the 1970s witnessed higher inflation rates which mean that it was not the deflation. Therefore, option 'd' is the correct answer. Option (a): The oil shocks of the 1970s are marked with the higher rates of inflation in the economy due to the higher oil prices in the economy...

The deflation in the economy.

Economics For Today

10th Edition

ISBN: 9781337613040

Author: Tucker

Publisher: Cengage Learning

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Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 17, Problem 18SQ

To determine