Inflation inertia is the tendency for inflation to:
A. increase when the Fed decreases interest rates.
B. decrease when the Fed increases interest rates.
C. change relatively slowly from year to year.
D. equal zero.
Answer: C
You might also like to view...
If a natural monopoly is regulated using
A) a marginal cost pricing rule, the firm maximizes its profit. B) an average cost pricing rule, the firm incurs an economic loss. C) a total cost pricing rule, the firm will exit the industry. D) a marginal cost pricing rule, the firm incurs an economic loss. E) an average cost pricing rule, the firm maximizes its profit.
When a payroll tax is enacted, the wage received by workers
a. falls, and the wage paid by firms rises. b. falls, and the wage paid by firms falls. c. rises, and the wage paid by firms falls. d. rises, and the wage paid by firms rises.
The development of complex algorithms that perform "brain work" in the future is likely to:
A. increase the number of jobs requiring little thought. B. higher income equality. C. increase overall employment. D. lengthen the overall workweek.
External benefits cause the market to:
A. underallocate resources. B. be more efficient. C. set excessively high prices. D. have persistent shortages.