The costs of disinflation would be low if
A. the Phillips curve were nearly horizontal.
B. the Phillips curve adjusted slowly to changes in inflation.
C. wage and price controls were used.
D. expected inflation falls as inflation falls.
Answer: D
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Demand for Snickers bars will decrease if:
A. the price of Snickers bars decreases. B. a news story claiming 95% of all geniuses eat at least one Snickers bar a day is released. C. the price of Milky Way bars (a substitute) decreases. D. the price of Milky Way bars (a substitute) increases.
If a country's political leaders wanted to promote economic growth, which of the following policy alternatives would be most effective?
a. imposition of price controls on agricultural products in an effort to keep food cheap. b. imposition of high marginal tax rates designed to reduce income inequality. c. imposition of tariffs and other trade restraints limiting international trade. d. monetary policy consistent with long-run price stability
Figure 4-12
Refer to . The supply curve S and the demand curve D1 indicate initial conditions in the market for college textbooks. A new government program is implemented that grants students a $30 per textbook subsidy on every textbook they purchase, shifting the demand curve from D1 to D2. Which of the following is true for this subsidy given the information provided in the exhibit?
a.
The original average selling price of textbooks was $100, and after the subsidy it rises to $120.
b.
$90 represents the net price a buyer must pay for a textbook after taking into account the subsidy payment.
c.
Textbook buyers will receive an actual benefit of $10 from the subsidy, while textbook sellers will receive an actual benefit of $20 from the subsidy.
d.
All of the above are true.
The "Walker thesis," that falling birth rates among native-born Americans was due to immigration, is reinforced by the view that immigrants were a direct capital transfer from Europe to America
Indicate whether the statement is true or false