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    Price Theory and Applications
  4. Exam
    Exam 2: Prices,costs and Gains From Trade
  5. Question
    If Inflation Causes the Absolute Prices of All Commodities to Double,then
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If Inflation Causes the Absolute Prices of All Commodities to Double,then

Question 2

Question 2

Multiple Choice

If inflation causes the absolute prices of all commodities to double,then the relative prices


A) will also double.
B) will be halved.
C) will be unchanged.
D) may rise,fall,or remain unchanged.

Correct Answer:

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