Question

Between 1980 and 1984 inflation in the US fell from 9.5% to 4%, hence during this...

Between 1980 and 1984 inflation in the US fell from 9.5% to 4%, hence during this period US experienced

Select one:

a. Hyperinflation

b. Deflation

c. Disinflation

d. Falling Prices

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The deflation means a decrease in the overall price level in the economy.

Disinflation is referred as a decrease in the rate of inflation. In other words, it is a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time. It is the reverse of reflation.

Hence when between 1980 and 1984 inflation in the US fell from 9.5% to 4%, hence during this period US experienced disinflation.

This is because there is fall in the inflation rate.

Hence option c is the correct answer.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Chapter 30 Money Growth and Inflation 1. Over the past 70 years, prices in the U.S....
Chapter 30 Money Growth and Inflation 1. Over the past 70 years, prices in the U.S. have risen on average about a. 2 percent per year. b. 4 percent per year. c. 6 percent per year. d. 8 percent per year. 2. Over the past 70 years, the overall price level in the U.S. has experienced a(n) a. 4-fold increase. b. 8-fold increase. c. 12-fold increase. d. 16-fold increase. 4. Inflation can be measured by the a. change in the...
1. When demand pull inflation occurs, then we will observe which of the folllowing: a. The...
1. When demand pull inflation occurs, then we will observe which of the folllowing: a. The company will experience a situation known as stagflation b. there will be an increase in the in the unemployment rate and inflation rate c. there will be deflation accompanied by an increase in national output d. there will be a decrease in the unemployment rate in national output e. there will be a decrease in the unemployment rate and an increase in the inflation...
1. Suppose that we are at a long-run equilibrium and suddenly aggregate demand rises. In the...
1. Suppose that we are at a long-run equilibrium and suddenly aggregate demand rises. In the short run this will: a. increase prices. b. increase output. c. increase real wages. d. All of the above. e. Both A and B are correct. 2. The AS/AD model is unable to show a situation in which we have _____ and _____ at the same time. a. inflation;   growth b. deflation;   growth c. inflation;   depression d. deflation;   depression e. inflation; deflation. 3. A...
Inflation is undesirable because it: Question 1 options: A) invariably leads to hyperinflation. B) arbitrarily redistributes...
Inflation is undesirable because it: Question 1 options: A) invariably leads to hyperinflation. B) arbitrarily redistributes real income and wealth. C) reduces everyone's standard of living. D) usually is accompanied by declining real GDP. Question 2 Which of the following will not tend to shift the consumption to increase? Question 2 options: A) A currently small stock of durable goods in the possession of consumers. B) The expectation of a future decline in the consumer price index. C) The expectation...
1. When the inflation rate is 4 percent, the Bank of Canada will A) buy bonds...
1. When the inflation rate is 4 percent, the Bank of Canada will A) buy bonds to lower interest rates and shift the aggregate demand curve rightward. B) sell bonds to raise interest rates and shift the aggregate demand curve leftward. C) do nothing, since an interest rate of 4 percent is desirable. D) sell bonds to lower interest rates and accelerate the economy. E) buy bonds to raise interest rates and slow down the economy. 2. If the annual...
1. During the 1970s, the velocity of money, as measured by M1, was: a. relatively constant....
1. During the 1970s, the velocity of money, as measured by M1, was: a. relatively constant. b. grew at a relatively constant rate. c. fell at a relatively constant rate. d. was very erratic, rising and falling but higher at the end of the 1970s. e. was very erratic, rising and falling but lower at the end of the 1970s. 2. Monetary policy can affect the price level: a. in both the short run and the long run. b. neither...
1) Money is __________ store of value because of __________. Select one: a. not a; inflation...
1) Money is __________ store of value because of __________. Select one: a. not a; inflation b. a perfect; inflation c. an imperfect; inflation d. a perfect; its universal acceptance 2) Suppose an economy is at full-employment equilibrium at a GDP of $25 billion and investment declines by $4 billion. According to Keynes, this economy will: Select one: a. Reach a new equilibrium at a level of output between $21 billion and $25 billion. b. Reach a new equilibrium at...
Firms are most likely to experience collateral damage during a  _____, and their borrowing and investment activities...
Firms are most likely to experience collateral damage during a  _____, and their borrowing and investment activities will _____ its severity. a. recession; dampen b. recession; amplify c. expansion; dampen d. expansion; amplify According to macroeconomics theory, in the short run: Select one: a. there is a negative relationship between the inflation rate and real GDP growth rate b. real GDP growth will reach a maximum when the inflation rate is zero. c. there is a positive relationship between the inflation...
1.) During the financial crisis of 2007-2009, A. yields on all types of securities fell. B....
1.) During the financial crisis of 2007-2009, A. yields on all types of securities fell. B. yields on all types of securities rose. C. yields on Treasury securities fell while yields on corporate securities rose. D. yields on Treasury rose while yields on corporate securities fell. 2.) SELECT ALL the true statements about the Federal Funds rate (FFR). A. The FFR is a market determined interest rate. B. The FFR is explicitly set be the Federal Reserve. C. The FFR...
In the trade relationship with China, why is the US dollar in more demand than the...
In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan? A.) More people demand the yuan domestically in China, so it is not used for imports and exports. B.) The dollar is the common transaction currency between the two countries. C.) The yuan is pegged to the US dollar. D.) Formal institutions and regulations demand the trade be conducted in the dollar. Which of the following is NOT an advantage of a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT