The Primary Problem Caused by the Price Revolution of the Late

question 39

Multiple Choice

The primary problem caused by the Price Revolution of the late sixteenth century was:

• A)depression.
• B)recession.
• C)stagflation.
• D)inflation.
• E)prosperity.

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Definitions:

Unemployment

The situation in which individuals who are capable of working and are actively seeking employment are unable to find a job.

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheated economy by increasing interest rates and reducing the supply of money.

Phillips Curves

A graphical representation showing an inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Phillips Curve

A concept in economics that demonstrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy over the short term.