In Eastern Europe, the Middle Class of Business and Professional

question 21

Multiple Choice

In eastern Europe, the middle class of business and professional people was small except in:

• A) Austria and Bohemia.
• B) Hungary and Serbia.
• C) Bulgaria and Romania.
• D) Poland and Hungary.

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Definitions:

Contractionary Monetary Policy

A central banking strategy involving the increase of interest rates or reduction of the money supply to decrease inflation and slow down economic growth.

Short-Run Phillips Curve

A curve illustrating an inverse relationship between the rate of inflation and the rate of unemployment in the short term.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services rise.

Financial Crisis

A situation where financial assets suddenly lose a large part of their nominal value, often leading to bankruptcies, bank failures, and economic downturns.