The inflation gap can best be described as:
A) the percentage difference between GDP and its potential
B) the difference between inflation and its target
C) the change in the inflation rate from one year to the next
D) the difference between the inflation rate and the average inflation rate of that of the nations with the 3 lowest inflation rates
B
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Black markets emerge during times of
A. price floors. B. price ceilings. C. both price floors and price ceilings. D. neither price floors nor price ceilings.
According to the Keynesian view of aggregate supply, an increase in the money supply will:
A. Always cause inflation. B. Cause inflation if the economy is at full employment. C. Cause inflation only if aggregate supply is horizontal. D. Never cause inflation.
People seldom break a line while waiting for checkout in a supermarket. This is an example of a ________ to solve an externality
A) Coasian approach B) Pigouvian approach C) command and control mechanism D) social enforcement mechanism
Define the utility possibilities frontier. Explain what it means when society is inside the utility possibilities frontier. Explain what it means when society is on the utility possibilities frontier
Explain what determines the point that society arrives at on the utility possibilities frontier.