Inflation ________ the signals sent by price changes to demanders and suppliers of goods and services.
A. has no impact on
B. amplifies
C. enhances
D. obscures
Answer: D
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Describe China's reform path, including the forces that started China's reform efforts and how they continued through the 1980s and early 1990s
What will be an ideal response?
In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Autonomous expenditure equals:
A. 290 + 0.75Y. B. 290. C. 320. D. 320 + 0.25Y.
The market mechanism satisfies all consumer desires and maximizes business profits.
Answer the following statement true (T) or false (F)
According to supply-side fiscal policy, reducing tax rates on wages and profits will:
A. create demand-pull inflation. B. lower the price level but may trigger a recession. C. result in stagflation. D. reduce both unemployment and inflation.