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The term stagflation can be defined as



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1-2 XTA Final assesment

4. The term stagflation can be defined as ........... .
A) high unemployment in spite of high levels of production
B) a decrease in the rates of inflation
C) the combination of high inflation and economic recession
D) inflation in an overactive economy
E) high levels of peacetime inflation
5. The economic crisis of the mid-1970's ............ .
A) followed the same pattern as earlier economic crisis
B) caused people to lose faith in economics
C) had little effect on the industry of developed countries
D) caused the economy to be overactive
E) was characterised only by high inflation and low production
6. The main subject of the passage is ................. .
A) the growing unpopularity of economics as a science
B) the unusual nature and the extensive effects of the economic crisis of the 1970's.
C) the relationship between unemployment and recession
D) the industrial decline of Japan and some Western countries
E) how to combat high inflation and unemployment
III. The great wave of international terrorist that first reached a climax in 1972 showed no signs of abating in 1975. Strictly speaking, the phenomenon was not new; what was new was its rapid growth in the 1970s, made possible by increasingly sophisticated technology. Some of this new technology consists of specialised equipment, such as miniaturised or remote-control detonating devices, hand-held rocket launchers, and the like, which make terrorism more lethal, more effective, and less risky for the terrorist. But even improvements in generally available technology are important. For example, self-dialling international telephone communications and jet travel facilitate conspiracies across national boundaries and the perpetration of political crimes by nationals of country in another. The growth of television has contributed to the easy dissemination of terrorist techniques, such as hijacking of aircraft and the kidnapping of diplomats or businessmen for ransom.

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