When There Is Extremely High and Volatile Inflation in an Economy,the

question 18

Multiple Choice

When there is extremely high and volatile inflation in an economy,the decision-making of firms leads to a very ________ SAS curve and thus relatively ________ cycles in real GDP.

• A)steep,mild
• B)steep,violent
• C)flat,mild
• D)flat,violent

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Definitions:

Natural Resources

Resources that are found in nature and can be used for economic gain, such as minerals, forests, water, and fertile land.

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured by the rise in the gross domestic product (GDP).

Corruption

The abuse of entrusted power for private gain, which can occur in both the public and private sectors.

Poor Administration

Inefficient or ineffective management practices within an organization or government, often leading to suboptimal results, waste, or failure to meet objectives.