Question

Please answer the question by choosing the word in the (). Please answer 1-5

1.Contrary to popular opinion its (deflation / table prices / Inflation) and not (deflation / inflation /stable prices) that is associated with depressions and recessions.

2.The article on the Venezuelan Bolivar explains that its actually cheaper to use money as (toilet paper / a chair / cash / plates) than to go buy it with money. This is due to the hyperinflation that has driven Venezuela into a (barter / cash / monetary) style economy.

3.If GDP is (less than / equal to / greater than) population growth the country is actually getting (wealthier / greater / poorer.)

4. Regarding the Toll Lane video I posted:

The supply in this situation is (priced out / opposite / variable / fixed) while the demand is (priced fixed / fixed / variable / level). The idea is to vary the (supply / demand / price) in order to reduce (quantity demand / demand / price) at peak traffic periods.

5. Inflation is easy to cause, at least in the modern day, due to the existence of (the gold standard / hard currencies / paper money)

Answer 1

The correct options for each statement is given as follows:

1. Contrary to the popular belief its deflation and not inflation that leads to depressions and recessions.

2. The article on the Venezuelan Bolivar explains that its actually cheaper to use money as toilet paper than to go buy it with money.  This is due to the hyperinflation that has driven Venezuela into a barter style economy.

3. If GDP is greater than population growth the country is actually getting wealthier.

4. The supply in the toll lane situation is fixed while the demand is variable. The idea is to vary the price in order to reduce quantity demanded at peak traffic periods.

5.  Inflation is easy to cause, at least in the modern day, due to the existence of paper money.