Most economists agree that modest inflation is desirable over zero inflation because:
A. it helps firms to more easily adjust real wages.
B. it allows a margin of error for those deciding on the money supply.
C. it allows the Fed to more easily engage in expansionary monetary policy.
D. All of these statements are true.
D. All of these statements are true.
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Worker mobility and transition aid to workers are two ways to offset some of the impacts of:
A. increasing wage inequality. B. increases in the labor supply. C. the slowdown in productivity growth. D. the slowdown in real-wage growth.
If a person is laid off from a job, he is considered by the Bureau of Labor Statistics to be a
A) job leaver. B) reentrant. C) job loser. D) new entrant.
Imperfect policy credibility implies that
A) traders may not believe that a central bank will do what it says. B) a central bank may intentionally undermine its policies. C) central bank authorities cannot be trusted. D) currency traders will often try to undermine central bank movements.
The tax burden will fall most heavily on buyers of the good when the demand curve
a. is relatively steep, and the supply curve is relatively flat. b. is relatively flat, and the supply curve is relatively steep. c. and the supply curve are both relatively flat. d. and the supply curve are both relatively steep.