Asset deflation generally:
A. cannot occur because people will know it will follow asset inflation.
B. is more harmful than the preceding inflation was helpful.
C. is less harmful than the preceding inflation was helpful.
D. is neither good nor bad, it merely redistributes income.
Answer: B
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Billy is a plumber. He earns $15 per hour. One morning, just before he was leaving for work, he found a pipe in his kitchen leaking. He spent two hours repairing the pipe
i) How will this affect the calculation of GDP? ii) If Billy had spent two hours working for one of his clients, what would have been the effect of his activity on the calculation of GDP?
A market economy answers the question "how" will goods be produced by focusing on a. dollar votes
b. consumer sovereignty. c. least-cost method of production. d. who can afford these goods.
Capital gains tax liabilities usually
A. must be recognized and paid by the estate of the decedent upon death. B. are recognized only upon the sale of a capital asset. C. are recognized before the sale of a capital asset as the gain actually accrues. D. do not include any taxation of actual inflation.