The overwhelming unpopularity of inflation among citizens is largely a result of the fact that
A) inflation raises the real cost of such basic necessities as food, housing, and clothing.
B) inflation reduces the value of real wealth.
C) no one knows what causes it.
D) no one (or almost no one) gains from inflation.
E) people who gain from inflation often erroneously conclude that they are losing as a result of it.
E
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In an economy with no income taxes or imports, the expenditure multiplier is
A) greater than 1 only if the MPC is greater than 1. B) less than 1 only if the MPC is less than 1. C) equal to 1 if the MPC is greater than 1. D) greater than 1 if the MPC is less than 1. E) always less than 1 no matter what the size of the MPC.
What are the primary sources of economic growth? Why are our real incomes and living standards today so much higher than those of our great grandparents 50 or 100 years ago? Why is the income per person so much higher in some countries than others?
In this graph, where is the short-run profit-maximizing output located?
a. 0
b. C
c. q*
d. P*
Which of the following described the attitude of most economists toward the U.S.-based automobile sector during the 2008 recession?
A. If their industry failed, it would not take the rest of the economy down with it. B. It should be taken over by the Federal Government. C. It needed to receive subsidies from the government in order to produce hybrid cars. D. It needed to be bailed out, just like the financial sector was bailed out.