The idea that inflation by itself reduces people's purchasing power is called
a. the inflation tax.
b. menu costs.
c. the inflation fallacy.
d. shoeleather costs.
c
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Employers and employees each pay a rate for Social Security that has risen from ________ to ________.
A. 15.3%; 5% B. 1%; 7.65% C. 1%; 5.45% D. 2%; 25%
An example of a public good or service provided by the federal government is
A) garbage collection. B) regulating gasoline prices. C) space exploration. D) determining the number of doctors admitted to medical school. E) setting each state government?s budget.
Other things constant, an increase in the price level will: a. shift the money demand curve to the right
b. shift the money demand curve to the left. c. increase the quantity of money people want to hold. d. decrease the quantity of money people want to hold. e. have no impact on the money demand curve.
Low quality is essentially the same as
A) low price. B) efficient production. C) high price. D) low price elasticity.