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Following a Bad Harvest,the Prices of Agricultural Commodities in Urbania

Question 68

Multiple Choice

Following a bad harvest,the prices of agricultural commodities in Urbania have increased dramatically,as have the prices of products manufactured from agricultural commodities.Government intervention has failed to arrest the rising prices.Based on this information,Urbania is undergoing _____.


A) deflation
B) stagflation
C) contraction
D) depression
E) inflation

Correct Answer:

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