In a period of rapid, unexpected inflation, resources can be lost
A) when firms invest in research and development instead of forecasting inflation.
B) when firms use resources to forecast inflation.
C) because rapid inflation almost always turns into a hyperinflation.
D) Both answers B and C are correct.
B
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What is the maximum that the firm can charge for the no-name brand wok without losing customers?
a. $50 b. $60 c. $70 d. $100
A supply curve can be used to measure producer surplus because it reflects
a. the actions of sellers. b. quantity supplied. c. sellers' costs. d. the amount that will be purchased by consumers in the market.
When a nation first begins to trade with other countries and the nation becomes an importer of corn,
a. this is an indication that the world price of corn exceeds the nation's domestic price of corn in the absence of trade. b. this is an indication that the nation has a comparative advantage in producing corn. c. the nation's consumers of corn become better off and the nation's producers of corn become worse off. d. All of the above are correct.
Refer to Figure 15-12. In the dynamic AD-AS model, the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues policy. This will result in
A) potential real GDP levels lower than what would occur if no policy had been pursued. B) inflation rates higher than what would occur if no policy had been pursued. C) real GDP levels higher than what would occur if no policy had been pursued. D) unemployment rates higher than what would occur if no policy had been pursued.