Recession, Hyperinflation, and Stagflation: Crash Course Eco

One definition of hyperinflation is when a country experiences a monthly inflation rate of over ___%.

Which country had the worst inflation rate in history?

• Hungary

• Germany

• Zimbabwe

• the United States

What did governments do that led to hyperinflation?

• didn't pay their bills

• printed a lot of money

• took risky loans from other governments

• charged too much interest

When the velocity of money increases, the inflation rate ____.

• disappears

• stays the same

• decreases

• increases

The way that Zimbabwe and Germany ended hyperinflation was to get rid of their currency.

• True

• False

What happens during a depression? Check all that apply.

• real GP falls

• prices are high

• unemployment is high

• the economy booms

The causes of the Great Depression have been clearly identified and defined.

• False

• True

When _______ declines, it leads to lower prices, higher unemployment, and more declines in spending.

• spending

• trade

• government regulations

• emu populations

What finally ended the Great Depression?

• monetary policy

• the massive government spending for World War II

• foreign trade

• a reorganization of the economic systems

_____________ is when output slows down or stops at the same time that prices rise.