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Unformatted text preview: Sheet1 Page 1 Exit Menu Quiz 3-8 Submitted by jjani on 3/16/2008 8:11:04 PM Points Awarded 15 Points Missed 0 Percentage 100% 1.The United States experienced a period of stagflation during the 1970s that was attributable to 1 A.post-Watergate malaise. B.rising deficits due to the Vietnam War. C.sharp increases in oil prices. D.the 1973 Treasury Department decision to print a substantial amount of additional money. Right Points Earned:1/1 Correct Answer:C Your Response:C 2.People are most likely to revert to barter in periods of 2 A.stagflation. B.deflation. C.hyperinflation. D.recession. Right Points Earned:1/1 Correct Answer:C Your Response:C 3.In the 1970s, the U.S. experienced a period of inflation due to sudden increases in oil prices. This is an example of 3 A.demand-pull inflation. B.the wage-price spiral. C.price destruction. D.cost-push inflation. Right Points Earned:1/1 Correct Answer:D Your Response:D 4.Which of the following is an accurate explanation of the wage-price spiral? 4 A.When labor costs rise, it causes a self-perpetuating form of cost-push inflation. B.Higher prices cause workers to demand higher wages. The higher wages raise production costs, which must be passed alo C.When one firm pays the efficiency wage, it raises the opportunity cost for all other workers in the industry, necessitating raisC....
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