Recent Lessons

Show all results for ""

Economics Quiz on Recession and Stagflation

5 Questions

0 Views

Economics Quiz on Recession and Stagflation

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What characterizes a recessionary phase?

Actual inflation is greater than expected inflation.
Actual inflation is less than expected inflation. (correct)
Real GDP is equal to potential GDP.
Actual inflation is equal to expected inflation.

Which of the following describes an inflationary gap?

Y < Yp
Y is at its natural level.
Y > Yp (correct)
Y = Yp

Stagflation is defined by which of the following characteristics?

High price levels and slow economic growth. (correct)
Stable prices and fluctuating economic growth.
High price levels and rapid economic expansion.
Low inflation and high economic growth.

What indicates a contractionary gap?

<p>Y < Yp, contributing to potential unemployment. (B)</p> Signup and view all the answers

What can contribute to stagflation?

<p>Negative supply shocks. (C)</p> Signup and view all the answers

Flashcards

Recessionary

A situation where actual inflation is lower than expected inflation.

Contractionary

A situation where actual inflation is higher than expected inflation.

Inflationary gap

A gap where the actual output (Y) is greater than the potential output (Yp).

Contractionary gap

A gap where the actual output (Y) is less than the potential output (Yp).

Signup and view all the flashcards

Stagflation

A situation characterized by both high price levels and slow economic growth. This usually comes with rising inflation and can be caused by negative supply shocks or poor economic policies.