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Inflation & Stagflation

Luka Rivera avatar Luka Rivera
25 July 2022
4.7 (114 reviews)
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question
Which is the best definition of inflation?
answer
a gradual expansion in the price of goods and services.
question
Which scenario is an example of the cost-push inflation?
answer
An increase in workers wages raises the production of cost of cars, and car prices as a result.
question
When government intervention makes currency worthless, this condition is called?
answer
Hyperinflation
question
What rate does the equation calculate?
answer
inflation rate
question
Stagflation occurs when high inflation combines with ?
answer
high levels and a low level of production.
question
Which scenario is an example of demand-pull inflation?
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Consumers have more money to buy cars, and the prices of cars and car parts rise as a result.
question
Typically, low inflation is a sign of
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a healthy economy bc it results from a steady rise in demand.
question
According to the graph 1971 to 1976 was a period of stagflation due to
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NOT rising unemployment and falling inflation
question
What is one consequence of stagflation?
answer
the economy drastically slow downs as money loses its buying power
question
Typically high inflation is a sign of
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a struggling economy bc it results from a rise in production cost.