Inflation Is Caused When

question 28

Multiple Choice

Inflation is caused when

• A) supply cannot keep pace with demand for goods and services.
• B) supply and demand for goods and services achieve near balance.
• C) taxes are raised too high.
• D) high rates of unemployment prevent consumers from buying goods.
• E) the government artificially curbs demand for goods and services.

---

Definitions:

Raw Scores

The original, unmodified scores obtained in any test or assessment before any transformations, such as standardization, are applied.

IQ Tests

Standardized tests designed to measure human intelligence and cognitive abilities.

Developed Countries

Nations with relatively high levels of economic development and standard of living, often characterized by high gross domestic product (GDP) per capita, advanced technological infrastructure, and a wide range of services available to citizens.

Nature and Nurture

The debate concerning the relative contributions of inherited traits (nature) and environmental factors (nurture) to human development.