After 1975, the U.S. economy continued to experience high inflation ________
A) mainly because the public expected policymakers to continue their expansionary efforts, and this led to increases in inflation expectations
B) most likely of the cost-push kind
C) until a very aggressive commitment to anti-inflationary monetary policy helped end this Great Inflation period
D) all of the above
E) none of the above
D
You might also like to view...
What lessons from Latin American capital-market crises might have been useful to prevent, or at least minimize, the East Asian crisis?
What will be an ideal response?
According to the table shown, the firm's marginal costs:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. are constant.
B. increase as output increases.
C. decrease until the 2nd unit, then increase.
D. increase until the 4th unit, then decrease.
If the price of 1 peso in dollars is 10 cents, the price of 1 dollar in pesos is
a. 10 pesos. b. 1 peso. c. 10 centavos. d. 100 pesos.
The more inelastic the consumer demand for the final product, the
A) greater will be the economic profit in a competitive market. B) greater the impact on employment from a change in the wage rate. C) more inelastic the demand for labor producing the product. D) more responsive the output demand to a change in the price of labor.