EC201 chapter_7_Quiz Full

D arecession answer a diff1 topic inflation skill

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Unformatted text preview: tion's balance of payments. economic A) reduce; worsens. B) reduce; improves. C) increase; improves. D) increase; worsens. Answer: D Diff: 2 Topic: Inflation Skill: Analytic AACSB: Analytic Skills 4) The floods of 1993 caused the price of corn to increase. This is an example of A) inflation. B) deflation. C) a sustained inflation. D) the operations of supply and demand. Answer: D Diff: 2 Topic: Inflation Skill: Conceptual AACSB: Reflective Thinking 5) The in the demand for mainframe computers caused manufacturers of mainframe computers to reduce prices decrease by 20%. This is an example of A) inflation. B) deflation. C) a sustained inflation. D) the operations of supply and demand. Answer: D Diff: 2 Topic: Inflation Skill: Conceptual 6) Inflation is an increase in A) the price of one item. B) the overall price level. C) the average income level. D) real gross national product. Answer: B Diff: 1 Topic: Inflation Skill: Definition 7) An increase in the overall price level is A) inflation. B) deflation. C) a price index. D) a recession. Answer: A Diff: 1 Topic: Inflation Skill: Def...
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