In Economies with Persistently High Inflation, an Increase in the Money

question 79

Multiple Choice

In economies with persistently high inflation, an increase in the money supply will:

• A) translate into a proportional increase in the aggregate price level much faster than usual.
• B) translate into a proportional increase in the aggregate price level only in the long run.
• C) not affect either the aggregate price level or the aggregate output.
• D) translate into a proportional increase in the aggregate output much faster than usual.

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Definitions:

Zone Of Proximal Development

Vygotsky's concept describing the difference between what a learner can do without help and what he or she can achieve with guidance and encouragement from a skilled partner.

Pretend Play

A form of play among children where they use their imagination to create scenarios, roles, and activities, often involving make-believe propositions.

Mental Acts

Activities of the mind, such as thinking, reasoning, remembering, and imagining.

Mutual Exclusivity Assumption

The cognitive bias in children to assume that any given object will only have one name.