Directions:The following passage contains
10 errors. In each case only one word is involved. You should proofread the
passage and correct it in the following way."
Inflation is an economic condition in that prices for consumer goods
79. ______
increase, and the value of money or purchasing power decrease. There are
three 80. ______ important causes of inflation.
The first and most important cause may be excessively government
spending. For example, in order to finance a war or
81. ______ carry on social programs, the government may spend
more money than it 82.
______ has received through taxes and other revenues, thus
creating a deficit. In 83. ______
order to offset this deficit, the Treasury Department can simply expand
the money supply for issuing more paper money supply to return
debts of 84.
______ government. This increase in the money supply will cause
the value of the dollar automatically decrease. The second cause
of inflation will occur when 85. ______ the
money supply increases faster than the supply of goods. If people have
more money, they will run out to buy such popular goods like televisions
and 86. ______ computers, and a shortage
wilt be the result. Industry will then produce more, at higher
prices, to satisfy with the demand. Finally, if abor unions demand
87. ______ that workers’ wages are increased to suit the
high cost of living, industry will 88. ______ meet this
demand and add other costs of production on the consumer.