During Periods of High and Variable Inflation,which of the Following

question 187

Multiple Choice

During periods of high and variable inflation,which of the following is unlikely to occur?

• A)Resources will be diverted from economically productive activities toward activities designed to protect individuals from inflation.
• B)Individuals will find it difficult to know whether a price change is due to the general inflation or due to shifts in supply or demand in a given market.
• C)Individuals will want to make long-term contracts in order to enjoy the benefits of higher prices.
• D)Some resources will be wasted as suppliers have to reprint menus and price catalogues to reflect the new,higher prices.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; an unconditioned stimulus and a conditioned stimulus.

Fear Response

The physiological and psychological reaction to perceived threats, activating the body's fight or flight response.

Conditioned Stimulus

A stimulus that initially has no effect but, after being paired with an unconditioned stimulus, eventually elicits a conditioned response.

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to be the basis of empathy and understanding others' actions.