Economists agree that increases in the money-supply growth rate increase inflation and that inflation is undesirable. So why have there been hyperinflations and how have they been ended?
Typically, the government in countries that had hyperinflation started with high spending, inadequate tax revenue, and limited ability to borrow. Therefore, they turned to the printing presses to pay their bills. Massive and continued increases in the quantity of money led to hyperinflation, which ended when the governments instituted fiscal reforms eliminating the need for the inflation tax and subsequently slowed money supply growth.
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The association of each quantity of a variable input, like labor, to its total product is the
a. short-run production function. b. average product of labor. c. stage of production. d. expansion path.
The break-even quantity is
a. 3000 b. 600 c. 500 d. 300
If the government grants patents to three different firms that produce a drug for diabetes, then the three firms may lead to the creation of: a. a monopoly
b. an oligopoly. c. monopolistic competition. d. perfect competition.
In an analysis of an excise tax on soda, which of the following is an exogenous variable?
a. The price received by sellers. b. The price paid by buyers. c. The quantity exchanged in the market. d. The tax.