Understanding Economic Expansion and Price Stability

The question asks us to fill in the blank in the sentence: "With a less rapid expansion of the economy, we should make________ progress toward stable price levels." This sentence describes a relationship between the speed of economic growth and the achievement of stable prices.

Typically, rapid economic expansion can lead to increased demand, potentially causing inflation (rising prices). Conversely, a slower or less rapid expansion usually helps curb inflation, thus making it easier to achieve stable price levels.

We need to choose a word that describes the type of progress made towards stable price levels when the economy expands less rapidly.

Analyzing the Options for Progress Towards Stable Prices

Let's look at the given options:

• Detailed: This word relates to having many details or being thorough. "Detailed progress" doesn't fit the context of the degree or amount of progress made towards a goal like price stability.
• Substantial: This word means considerable, significant, or ample. If a less rapid economic expansion helps in achieving stable prices, the progress made towards this goal would likely be significant or considerable. This option fits well with the idea that slowing down the economy helps quite a bit in controlling prices.
• Definite: This means certain, clear, or unambiguous. While the progress might be definite (it is certainly happening), the word "substantial" describes the *extent* of the progress better than "definite". "Definite" refers more to the certainty of the progress itself, not its magnitude.
• Infinite: This means without limit or end. Progress towards a *stable* level cannot be infinite. A stable level is a specific state, and once it's reached or approached, progress stops being infinite. This option is contradictory in this context.

Determining the Best Fit for Economic Progress

Considering the meaning of the sentence and the options, "substantial" is the most appropriate word. A less rapid economic expansion is a significant factor in controlling inflation and moving towards price stability. Therefore, one would expect to make significant, or substantial, progress.

The completed sentence reads: "With a less rapid expansion of the economy, we should make substantial progress toward stable price levels."

Revision Table: Key Concepts

Additional Information: Economy and Price Stability

The relationship described in the sentence is a basic concept in macroeconomics. When the economy grows too quickly, demand for goods and services can outstrip supply. This allows businesses to raise prices, leading to inflation. Central banks and governments often try to manage the pace of economic expansion to prevent high inflation and maintain stable price levels.

• Policies like increasing interest rates or reducing government spending can slow down economic expansion.
• Achieving stable price levels is often a key objective of economic policy because unpredictable price changes can harm consumers and businesses, making economic planning difficult.
• Different words describe degrees of progress: minimal, slow, steady, considerable, rapid, substantial, etc. "Substantial" implies a significant positive movement towards the goal.