Answered: sentence or two defining the following…

sentence or two defining the following terms in your own words. Give examples of each. a. Inflation b. Law of Comparative Advantage c. Law of Diminishing Demand

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter5: An Introduction To Macroeconomics

Section: Chapter Questions

Problem 2DQ

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Question

Write a sentence or two defining the following terms in your own words. Give examples of each.

a. Inflation

b. Law of Comparative Advantage

c. Law of Diminishing Demand

Definition Definition Economic principle that states that as the price of a good or service increases, the quantity demanded by consumers decreases, while a decrease in price leads to an increase in quantity demanded, assuming all other factors affecting the demand remaining constant.

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