In general, the only thing that can cause a sustained increase in the rate of inflation is:
a. a high rate of growth in the supply of money.
b. a significant increase in unemployment
c. a decrease in real GDP.
d. an increase in federal income taxes.
a
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A Nash equilibrium occurs
A) when each player acts without considering the actions of the other player. B) when each player takes the best possible action given the action of the other player. C) only when players use the tit-for-tat strategy. D) only when the game is played in Nashville, Tennessee. E) when each player takes the action that makes the combined payoff for all players as large as possible.
If the GDP deflator rises from one year to the next, we know that
A) economic growth has occurred. B) everyone in the economy is at least slightly worse off. C) real GDP has declined. D) the amount of double-counting in GDP has increased. E) the average money price of the goods included in GDP has risen.
A monopoly is a seller of a product
A) with a perfectly inelastic demand. B) without a well-defined demand curve. C) with many substitutes. D) without a close substitute.
Low marginal tax rates discourage work effort but make fewer people eligible for welfare.
Answer the following statement true (T) or false (F)