According to New Keynesians, which of the following is a key factor that determines the inflation rate?
A. the menu cost
B. supply shock
C. fiscal policy
D. anticipated future inflation
Answer: D
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Jon is risk averse. When he buys insurance against all risks, then
A) he knows his wealth with certainty. B) his utility exceeds his expected utility. C) his wealth exceeds his expected wealth. D) all of the above.
In absolute value, the tax multiplier is greater than the government purchases multiplier
Indicate whether the statement is true or false
In 2015, exports represented:
A. about 13 percent of U.S. GDP. B. about 1 percent of U.S. GDP. C. about 30 percent of U.S. GDP. D. nearly 20 percent of U.S. GDP.
According to Arthur Laffer, the graph that represents the amount of tax revenue (measured on the vertical axis) as a function of the size of the tax (measured on the horizontal axis) looks like
a. a U. b. an upside-down U. c. a horizontal straight line. d. an upward-sloping line or curve.