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. Directions: