Stagflation is a situation with high unemployment rates, high inflation rates, and little or no growth in the economy.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Which of the following most clearly illustrates the concept of derived demand?
a. An increase in the price of steak causes the demand for poultry to increase.
b. An increase in the demand for new houses leads to an increase in the demand for construction workers.
c. An increase in consumer income leads to an increase in the demand for services provided by the government.
d. An increase in the demand for new cars causes the demand for used automobiles to rise.
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