Expected inflation is
A. anticipating inflation over 2% from year to year.
B. based on inflation-adjusted averages year to year.
C. the opposite of disinflation.
D. the amount of inflation that households and businesses expect will continue into the future.
Answer: D
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Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?
A) Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. B) Because of the low birth rate in China, the labor force will soon decline. C) The United States invests more in research and development than does China. D) The Chinese migration of rural workers to more productive urban jobs.
During the colonial period, the English permitted both silver and gold to move freely in and out of the colonies
Indicate whether the statement is true or false
In the short-run if there is a surplus in the market for a product, the rationing function of price can be expected to cause
A) an increasing shift in the demand for the product. B) a decreasing shift in the supply of the product. C) an increase in the market price of the product. D) a decrease in the market price of the product.
The principle of comparative advantage says that
a. every individual should specialize in producing that good for which the absolute cost is the smallest b. the output of society as a whole will be the greatest if every individual specializes in producing that commodity for which his opportunity cost is the smallest c. monopoly power is gained by specializing in a large market and reducing costs d. monopoly power is gained by specializing in a small market and producing a differentiated product e. your financial investments should be "compared" in a common fashion to determine your maximum advantage