If a rapid disinflation has a lower sacrifice ratio than a slow disinflation, then reducing inflation is best accomplished by
A. a cold-turkey approach.
B. reducing interest rates.
C. increasing money growth.
D. gradualism.
Answer: A
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Which of the following is a limitation of GDP?
(a) It doesn't include a measure of the black economy. (b) It doesn't include a value for externalities. (c) It doesn't include a value for voluntary work. (d) All of the above are limitations of GDP.
The price of a Big Mac in the U.S. is $4.93; the price in France is 3.72 euros. The current exchange rate is 1.07€/$. What is the real exchange rate?
What will be an ideal response?
What is one reason patents are required?
A) Information concerning innovation is private and secure. B) Human nature is corrupt. C) Information concerning innovation is generally not private and secure. D) The patent only makes things better in the short run.
When Hurricane Andrew passed through Louisiana in the summer of 1992, approximately a quarter of the sugar cane crop was destroyed. Ceteris paribus,
A. the supply of sugar decreased, and the price of sugar decreased. B. the supply of sugar decreased, and the price of sugar increased. C. the demand for sugar increased, and the price of sugar increased. D. the demand for sugar decreased, and the price of sugar decreased.