If inflation were reduced, then it is
a. likely that real incomes would rise more rapidly and labor markets would be more flexible.
b. likely that real incomes would rise more rapidly but unlikely that labor markets would be more flexible.
c. likely that labor markets would be more flexible but unlikely that real incomes would rise more rapidly.
d. unlikely that real incomes would rise more rapidly and unlikely that labor markets would be more flexible.
c
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All of the following explain the downward slope of the aggregate demand curve EXCEPT
A) changes in the stock of real wealth held by individuals. B) the effect of changing interest rates on the quantity demanded of interest-rate-sensitive goods. C) the availability of foreign substitute goods. D) the presence of unused production capacity and unemployment.
What limits a bank's ability to extend loans?
A tax on sellers increases the quantity of the good sold in the market
a. True b. False Indicate whether the statement is true or false
Which of the following categories accounted for the largest percentage of total federal government expenditures in recent years?
A. income security B. national defense C. education and health D. interest on the national debt