For a Very Long Time Treeland Has Had an Inflation

question 259

Multiple Choice

For a very long time Treeland has had an inflation rate of 9%.Suddenly its inflation rate drops to 3%.The drop in the inflation rate

• A) could be due to slower money supply growth. We would expect unemployment to be higher.
• B) could be due to slower money supply growth. We would expect unemployment to be lower.
• C) could be due to higher money supply growth. We would expect unemployment to be higher.
• D) could be due to higher money supply growth. We would expect unemployment to be lower.

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost than competitors.

Crude Oil

An unrefined, naturally sourced petroleum compound made of hydrocarbon collections and different organic elements.

Comparative Advantage

The ability of an individual or group to produce a good or service at a lower opportunity cost than another.

Tractors

Vehicles specially designed to deliver high torque at low speeds, used mainly in the farming industry for agricultural purposes.