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Pull the rope to inflation or deflation

Exercise and reference answers

Categories
  1. Inflation
  2. Deflation
Questions
  1. Answer
    Inflation
    Question
    Most prices in an economy are rising.
  2. Answer
    Deflation
    Question
    Most prices in an economy are falling.
  3. Answer
    Deflation
    Question
    A few months of 2009 in the United States.
  4. Answer
    Inflation
    Question
    Hyperinflation is its extreme form.
  5. Answer
    Inflation
    Question
    Nibbles away at real wages.
  6. Answer
    Inflation
    Question
    A borrowing government gains when it is unexpected.
  7. Answer
    Deflation
    Question
    The price level moves downward.
Instructions
Tap the side of the rope that each description belongs to.

Explanation

_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 8 'Inflation'_
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