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52. Periods of extreme hyperinflation are the result of: Multiple Choice stock market price bubbles. oil...

52. Periods of extreme hyperinflation are the result of:

Multiple Choice

  • stock market price bubbles.

  • oil price shocks.

  • severe recessions.

  • excessive monetary expansions by government.

55.

Refer to the above diagram. If aggregate supply shifts from AS1 to AS2, then the price level will:

Multiple Choice

  • increase and real domestic output will increase.

  • decrease and real domestic output will increase.

  • increase and real domestic output will decrease.

  • decrease and real domestic output will decrease.

58. Which is the correct way to calculate the unemployment rate?

Multiple Choice

  • [(Unemployed)/(Population)] × 100

  • [(Unemployed)/(Labor force)] × 100

  • [(Labor force)/(Population)] × 100

  • [(Labor force)/(Unemployed)] × 100

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Answer #1

Ans 52. Extreme hyperinflations are usually a result of:

Excessive monetary expansions by government.

Printing of money or demand pull inflation usually leads to hyperinflation since this leads to an increase in spending by the government. As it increases the money supply, prices rise as in regular inflation.

Ans 55. Since there is no diagram provided with the question, I cannot answer this question. Sorry for the trouble.

Ans 58. Unemployment rate = [(Unemployed)/(Labor force)] × 100

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