False!
Inflation means a dramatic increase in prices. The opposite of inflation is deflation. Deflation is a dramatic decrease in prices.
False
False. If inflation occurs, prices rise. Since the CPI is an indicator of price changes, the CPI will rise correspondingly.
false
False, crowding in occurs when decreases in government spending lead to an increase in private spending.Note that we (almost) often have inflation in all economies. Inflation just means that prices rises over time, something which is quite normal. Many countries operates with an inflation target of 2-2,5% per year, and it is only when actual inflation deviates substantially from this target that problem occurs. A high inflation rate (well above the target) together with high unemployment is known as stagflation.
yes
False
False. If inflation occurs, prices rise. Since the CPI is an indicator of price changes, the CPI will rise correspondingly.
True. At it's peak in 1993, inflation in Yugoslavia ran at 100% (prices doubling)/day in the local currency.
false
False, crowding in occurs when decreases in government spending lead to an increase in private spending.Note that we (almost) often have inflation in all economies. Inflation just means that prices rises over time, something which is quite normal. Many countries operates with an inflation target of 2-2,5% per year, and it is only when actual inflation deviates substantially from this target that problem occurs. A high inflation rate (well above the target) together with high unemployment is known as stagflation.
yes
False
False
false
yes
yes
False. Nature refers to genetics, nurture refers to environmental conditions.