If the price index is 108.4 in period 1 and 118 in period 2, the inflation rate from period 1 to period 2 would be _____

Equilibrium, in the short run, is achieved when:

a. differences in rates of return cause investors to purchase and sell currency and thereby change the spot rate of exchange. b. the government recognizes a problem and takes action to correct it. c. traders adjust their expectations to match reality. d. inflation falls to zero.

The economist John Kenneth Galbraith (1979) lists several major sources of weakness in the economy that laid the groundwork for the collapse of the 1930s. These sources include all of the following except

(a) A weak banking structure (b) Ignorance of the economy's problems by the nation's leaders (c) An overgrown federal bureaucracy with extensive regulation of the private economy (d) An increasingly unequal distribution of income