For a Number of Years Country a Had Inflation of 3

question 69

Multiple Choice

For a number of years country A had inflation of 3% but for the last five years has had inflation of 6%.Country B had inflation of 4% for many years,but very recently inflation unexpectedly rose to 9%.Other things the same,in which of the countries would the higher inflation rate be more likely to reduce unemployment?

• A)both country A and country B
• B)neither country A nor country B
• C)country A but not country B
• D)country B but not country A

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Definitions:

Command Economy

An economic system wherein the government or central authority makes all decisions regarding the production and distribution of goods and services.

Global South

A term referring to countries primarily located in the Southern Hemisphere, often focusing on regions in Africa, Latin America, Asia, and the Middle East, highlighting developmental and economic disparities.

Newly Industrialized Country

A term referring to countries that are undergoing rapid industrialization and showing signs of transitioning from developing to developed status.

Developing Country

A nation characterized by a lower level of industrialization, a lower Human Development Index, and generally, a lower standard of living compared to developed countries.