According to supply-siders
a. there exists a temporary tradeoff between higher inflation and higher output growth.
b. there exists a permanent tradeoff between higher inflation and higher output growth.
c. there exists no tradeoff between higher inflation and higher output growth.
d. there exists a temporary tradeoff between higher inflation and higher output growth during periods of low inflation only.
C
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A determinant of the price elasticity of demand is
A) whether the good is a durable or a nondurable. B) the availability of resources used in the production of the product. C) how well consumers like the good. D) the proportion of the consumer's total budget spent on the good.
In real business cycle models, shifts of the aggregate demand curve ________
A) cause changes in inflation, but have no effect on output B) cannot occur C) result from changes in the willingness to work D) result from Solow residuals
The above figure shows the reaction functions for two pizza shops in a small isolated down. The Stackelberg leader will produce
A) 25 pizzas. B) 50 pizzas. C) 66.7 pizzas. D) 100 pizzas.
Taxes that governments place on imported goods for reasons such as protecting sensitive industries, influencing humanitarian practices, and protecting against dumping are called ____________.
a. tariffs b. penalties c. restrictions d. limits