Question 1
In which of the following conditions is the inflation rate likely to fall and the unemployment rate likely to rise?
◦ hyperinflation
◦ recession
◦ boom
◦ stagflation
Question 2
The floods of 1993 caused the price of corn to increase. This is an example of
◦ inflation.
◦ deflation.
◦ a sustained inflation.
◦ the operations of supply and demand.