The Blat Economy Described in the Text Results When Price

question 174

Multiple Choice

The blat economy described in the text results when price controls are:

• A) extensive and cause chronic shortages in the economy.
• B) extensive but the causes of shortages in the economy are only temporary.
• C) short-lasting but cause chronic shortages in the economy.
• D) short-lasting and cause only temporary shortages in the economy.

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Definitions:

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices increase.

Deflation

A reduction in the overall price of products and services, frequently linked with a rise in the value of currency.

Recession Of 2001

A period of temporary economic decline during which trade and industrial activity were reduced, marked particularly by the bursting of the dot-com bubble.

Endogenous Factors

Internal factors that originate within an economic system or model and determine its behavior and state.