According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?
A) firms' average inflation adjusted per-unit costs of production
B) anticipated future inflation
C) an unexpected increase in aggregate demand
D) all of the above
D
You might also like to view...
Which of the following is not correct concerning quotas?
a. The enactment of quotas rewards domestic producers with higher prices. b. The enactment of quotas creates opportunities for lobbyists to seek the perpetuation of quotas. c. Quotas on steel, textiles and apparel, and sugar have been in effect for several decades. d. Lobbying efforts by domestic producers and foreign exporters are vigorously fought by domestic consumers. e. The auctioning of quotas would reduce their attractiveness to foreign exporters.
If the Fed wishes to decrease the money supply, it could:
A. print less currency. B. increase the reserve requirement. C. buy bonds. D. decrease the discount rate.
Which of the following is NOT a type of integration?
A. Mega mergers B. Vertical mergers C. Conglomerate merger D. Horizontal mergers
Which of the following situations will arise in the domestic market following the removal of an import quota?
A. imports increase, domestic production increases, prices increase B. imports increase, domestic production decreases, prices decrease C. imports decrease, domestic production increases, prices decrease D. imports decrease, domestic production decreases, prices increase