14. Use the verbs in brackets in the proper tense and voice forms:

1. Other commodities such as cigarettes …(to use) as money.

2. So great … (to be) the loss of confidence in Hungary that the new currency had … (to give) a new name.

3. Another type of inflation … (to describe) as suppressed inflation.

4. The effect on prices …(to minimize) by the use of such devices as price controls and rationing.

5. The most common type of inflation is that …(to experience) since the war in Britain.

6. The causes of inflation may be … (to classify) as demand-pull or cost push.

7. Demand inflation may …(to define) as a situation where aggregate demand persistently … (to exceed) aggregate supply at current prices so that the prices … (to pull) upwards.

8. This type of inflation … (to associate) with conditions of full employment.

9. If there are unemployed resources available, an increase in demand can …( to meet0 by bringing these resources into employment.

10. If the total demand for goods and services continues … (to increase), a full employment situation … (to reach).

11. In order … (to increase) the rate of capital accumulation, resources will have … (to transfer) from the production of capital goods.

15. Answer the questions:

1. How can inflation be defined?

2. What is hyperinflation?

3. What happens under conditions of hyperinflation?

4. What is the only possible course of action when money becomes unacceptable as a medium of exchange?

5. What is suppressed inflation?

6. How can you characterize creeping inflation?

7. How are the causes of inflation usually classified?

8. How may demand inflation be defined?

9. What is demand inflation usually associated with?

10. When may a situation of excess demand arise?

11. Why are exports inflationary?

12. When may demand inflation develop?

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