University of Arkansas ECON 101 PFP Chapter 17 Exam Review Test Answered 100% Correctly!

A. Excess of supply for a good or goods as compared with the demand. B. Increases in the cost of items needed to produce a good. C.Lack of competition arising from few producers for that item and barriers to new companies entering the market. D. An excess supply of money in the economy. E. All of the above are inflation factors. 2. Which of the following is not an effect of inflation? A. Redistribute wealth. B. Change economic behavior and bring about inefficient economic activity. C. Result in action by the Federal Reserve to stop the inflationary spiral. D. Increased uncertainty about the future. E. All of the above are effects of inflation. 3. The rate of inflation is equal to which of the following? A. 100 x current price – (price in previous periods x price in previous periods). B. 100 x (price in previous periods – current price)/price in previous periods. C. 100 x (current price – price in previous periods)/price in previous periods. D. 100 x price in previous periods – (current price/price in previous periods). E. None of the above. 4. What was the highest annual inflation in a given year in the U.S. during the period ? A. 10.4%. B. 11.0%. C. 11.2%. D. 13.6%. E. None of the above. 5. During which of the followings decades was the average inflation highest in the U.S.? A. . B. . C. . D. . E. . 6. If the current amount is $10