Which statement best explains the role of producers in economics quizlet?

Which statement best explains the role of producers in economics quizlet?

Which statement best explains the role of producers in economics? Producers supply goods and services.

How do you customize feelings about the economy help contribute to growth?

How do consumers’ feelings about the economy help contribute to growth? Positive consumer attitudes influence spending habits. Positive consumer attitudes increase job prospects. Positive consumer attitudes inspire increased production.

Which of the following best describes a circular flow model?

The correct answer is A: The model represents the movement of money throughout the economy. The circular flow model, also known as circular flow income, is a model which represents the interdependence of the relationships between the actors in macroeconomics: businesses, households, and government.

Which of the following best describes cost-push inflation?

Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials. Cost-push inflation can occur when higher costs of production decrease the aggregate supply (the amount of total production) in the economy.

What is the difference between inflation and deflation in economy?

Inflation occurs when the prices of goods and services rise, while deflation occurs when those prices decrease. The balance between these two economic conditions, opposite sides of the same coin, is delicate and an economy can quickly swing from one condition to the other.

What is the difference inflation and deflation?

Inflation happens when the price of goods and services increase, while deflation takes place when the price of the goods and services decrease in the country. Inflation and deflation are the opposite sides of the same coin.

What is worse inflation or deflation?

Deflation is when the prices of goods and services fall. Deflation expectations make consumers wait for future lower prices. That reduces demand and slows growth. Deflation is worse than inflation because interest rates can only be lowered to zero.

Is inflation always better than deflation?

Inflation is better than deflation. A fall in prices can cause an increase in the real debt burden and discourage spending and investment.