An economic crisis is always characterized by inflation, but sometimes characterized by high growth rates in...

An economic crisis is always characterized by inflation, but sometimes characterized by high growth rates in output. True or False?
A debt-deflation spiral can lead to a Phillips Curve. True or False?
An oil price ------------------ is a sudden increase or decrease in the nominal or real price of oil. This is an example of a------------------- -side shock. (Fill in the blanks)
Stagflation refers to low------------------------ and high inflation. The US experienced a period of stagflation in the -------------- 's.(Fill in the blanks)

Expert Solution

1. An economic crisis is always characterized by inflation, but sometimes characterized by high growth rates in output. False

Reason- Instead of high growth ates of output it is low growth rates of Output.

2. A debt-deflation spiral can lead to a Phillips Curve. False

Reason- Debt deflation is recession occuring due to rising levels of debt due to deflation. It does not directly lead to Philips curve.

3 An oil price ---shock--- is a sudden increase or decrease in the nominal or real price of oil. This is an example of a---supply-- -side shock.

Reason- Oil price affects the output level produced and hence it is the supply side shock.

4 Stagflation refers to low---economic growth--- and high inflation. The US experienced a period of stagflation in the - 1970s---

Reason- According to stagflation when economy slowed unemployment would rise but inflation would fall.

Rahul Sunny answered 2 years ago

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