An inflation shock is:
A. the level of inflation consistent with output in an expansionary gap.
B. a change in the inflation rate generated by excessive aggregate spending.
C. the level of inflation consistent with output in a recessionary gap.
D. a sudden change in the normal behavior of inflation, unrelated to the nation's output gap.
Answer: D
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If a natural monopoly has an average cost pricing rule imposed, the rule will
A) maximize total surplus in the regulated industry. B) generate an economic loss for the regulated firm. C) reduce the consumer surplus and generate a deadweight loss when compared to a marginal cost pricing rule. D) set price below marginal cost.
A sole proprietorship is the type of business that has ________ government rules and regulations affecting it
A) only federal B) the fewest C) the most D) no
If increasing the utility of the transfer recipient is the only criterion cared about, then _____
a. a cash payment will usual be preferred to an in-kind payment b. an in-kind payment will usually be preferred to a cash payment c. a cash payment and in-kind payment are always equal d. an in-kind payment will always be preferred to a cash payment
Porter's five forces model is trying to identify things that leads to a company's success
Indicate whether the statement is true or false