Inflation and Stagflation

Question 1

Use the drop-down menus to complete the statements.

Revolt · Accepted Answer

When people have more money and eagerly spend it, this increases .This leads to inflation.When the prices of raw materials or labor increase, this causes an increase in , resulting in for consumers.: demand; When people have more money and eagerly spend it, this increases .This leads to inflation.When the prices of raw materials or labor increase, this causes an increase in , resulting in for consumers.: demand-pull; When people have more money and eagerly spend it, this increases .This leads to inflation.When the prices of raw materials or labor increase, this causes an increase in , resulting in for consumers.: the cost of production; When people have more money and eagerly spend it, this increases .This leads to inflation.When the prices of raw materials or labor increase, this causes an increase in , resulting in for consumers.: higher prices

Question 2

cost-push✔ demand-pulldecreased

Revolt · Accepted Answer

✔ demand-pull

Question 3

supplydemand✔ the cost of production

Revolt · Accepted Answer

✔ the cost of production

Question 4

between 2010 and 2013between 2014 and 2015✔ in 2009 only

Revolt · Accepted Answer

✔ in 2009 only

Question 5

Use the drop-down menus to complete the statements.

Revolt · Accepted Answer

✔ increase; Inflation is a measure of how prices .: increase; Disinflation occurred .: between 2008 and 2009; The inflation rate was about in 2014.: 1.5 percent; Overall, prices declined .: in 2009 only

Question 6

✔ between 2008 and 2009between 2009 and 2010between 2013 and 2014

Revolt · Accepted Answer

✔ between 2008 and 2009

Question 7

1 percent✔ 1.5 percent2 percent

Revolt · Accepted Answer

✔ 1.5 percent

Question 8

Use the drop-down menus to complete the statements.

Revolt · Accepted Answer

✔ demand; When people have more money and eagerly spend it, this increases .This leads to inflation.When the prices of raw materials or labor increase, this causes an increase in , resulting in for consumers.: demand; When people have more money and eagerly spend it, this increases .This leads to inflation.When the prices of raw materials or labor increase, this causes an increase in , resulting in for consumers.: demand-pull; When people have more money and eagerly spend it, this increases .This leads to inflation.When the prices of raw materials or labor increase, this causes an increase in , resulting in for consumers.: the cost of production; When people have more money and eagerly spend it, this increases .This leads to inflation.When the prices of raw materials or labor increase, this causes an increase in , resulting in for consumers.: higher prices

Question 9

What are the effects of rapid inflation? Check all that apply.Interest rates increase.Banks loan more money.Unemployment declines.Uncertainty increases.Real income declines.

Revolt · Accepted Answer

Interest rates increase.; Uncertainty increases.; Real income declines.

Question 10

Which factors would be mentioned in an accurate description of stagflation? Check all that apply.a high level of productiona high inflation ratea low level of unemploymenta high level of unemploymenta low level of production

Revolt · Accepted Answer

a high inflation rate; a high level of unemployment; a low level of production

Inflation and Stagflation Answers

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