Wealth is redistributed from creditors to debtors when inflation was expected to be
a. high and it turns out to be high.
b. low and it turns out to be low.
c. low and it turns out to be high.
d. high and it turns out to be low.
c
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Supply-side inflation could be caused by which of the following?
A) an increase in aggregate demand B) a decrease in aggregate demand C) an increase in long-run aggregate supply D) a decrease in long-run aggregate supply
If MU = MC = P, an economist can judge with certainty that the distribution of output is
A. fair. B. equal. C. unbiased. D. efficient.
Import controls that can help a government maintain a fixed exchange rate, which if left to the foreign exchange market would depreciate, are
a. lowering tariffs and increasing quotas so that more international trade occurs b. raising tariffs and decreasing quotas so that its country's demand for foreign exchange decreases c. requiring exporters to turn over their foreign exchange to the government at a fixed exchange rate d. having the IMF loan the government enough foreign exchange to get through the crisis e. causing a devaluation of the nation's currency so that exports rise and imports fall
Explain the difference between the short run and the long run.
What will be an ideal response?