The Example of an Inflationary Gap in 2006-2007 Suggested That

question 178

Multiple Choice

The example of an inflationary gap in 2006-2007 suggested that the economy adjusts

• A)rapidly to inflationary gaps by lowering prices.
• B)rapidly to inflationary gaps by raising prices.
• C)slowly to inflationary gaps by lowering prices.
• D)slowly to inflationary gaps by increasing inflation.

---

Definitions:

Vibrio Cholerae

A bacterium that causes cholera, a severe diarrheal illness, through contaminated water or food.

Helicobacter Pylori

A type of bacteria that infects the stomach lining and can cause ulcers and sometimes lead to stomach cancer.

Chemoautotrophs

Organisms that obtain their energy through the chemical oxidation of inorganic substances and use that energy to synthesize organic compounds from carbon dioxide.