Disinflation occurs when:
A. the price level is falling.
B. investment plans exceed saving.
C. a speculative investment "bubble" is bursting.
D. the inflation rate is declining.
D. the inflation rate is declining.
You might also like to view...
The "real business cycle" (RBC) model adapts the Lucas model by replacing its assumption of
A) demand shocks as primary generators of cycles. B) adaptive expectations. C) continuous market-clearing. D) slow wage and price adjustment.
What determines the perfect competitor's supply curve? How is the industry supply curve found?
What will be an ideal response?
If the primary goal in implementing a tax is to maximize efficiency and minimize deadweight loss, the government should impose a(n):
A. income tax. B. lump sum tax. C. sin tax. D. proportional tax.
Explain the difference between correlation and causation. Give an example of each.
What will be an ideal response?