Inflation imposes a cost on society by directly decreasing average real income in the economy
a. True
b. False
B
You might also like to view...
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
As the wage rate rises, the income effect influences workers to choose ________ leisure, and the substitution effect influences workers to choose ________ leisure
A) more; less B) more; more C) less; less D) less; more
What is the financial capital market?
What will be an ideal response?
What are the effects of migration from developing nations?
a. It entices workers from industrial economies to emigrate to developing nations. b. It improves the technical efficiency of the developing nation's workforce. c. It provides a valuable safety valve for poor nations. d. It prevents brain drain.