Which of the following is true about inflation?
a. It reduces the cost-of-living of the typical worker.
b. It is measured by changes in the cost of a typical market basket of goods between time periods.
c. It causes the purchasing power of a dollar to rise.
d. It has no effect on real resources.
B
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Refer to Figure 11-7. If output is 100 units what is the fixed cost of production?
A) $8 B) $800 C) $1,000 D) This cannot be determined from the diagram.
When the free market produces less than the socially optimal quantity of a good,
a. negative externalities must be present b. marginal social cost must exceed marginal private cost c. marginal private benefit must exceed marginal social benefit d. the government should tax production of the good e. there has been a market failure
Wage differentials between groups can occur as a result of
a. job market discrimination and premarket discrimination only b. differences in education, job experience, and geographic location only c. job market discrimination and differences in education and job experience only d. premarket discrimination and differences in geographic location only e. premarket discrimination, job market discrimination, and differences in education, job experience, and geographic location
A decrease in the money supply might indicate that the Fed had
a. purchased bonds to increase banks reserves. b. purchased bonds to decrease banks reserves. c. sold bonds to increase banks reserves. d. sold bonds to decrease banks reserves.