Inflation will generally redistribute purchasing power when
a. it is fully expected
b. it is completely unexpected
c. it is greater than 3 percent
d. it is greater than 5 percent
e. it is greater than 10 percent
B
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The three components of consumption are durable goods, nondurable goods, and housing construction
Indicate whether the statement is true or false
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Economies of scale refers to when:
A. average total cost does not depend on the quantity of output in the long run. B. an increase in the quantity of output increases average total cost in the long run. C. an increase in the quantity of output decreases average total cost in the long run. D. None of these is true.
Durable goods, nondurable goods, and services are part of __________ and fall in the category of ________
a. GDP; personal consumption b. GDP; gross private domestic investment c. GDP; government purchases d. national income; inventory e. national income; employee compensation