The most important factor determining how quickly expected inflation adjusts when the government attempts to reduce inflation is
A. the slope of the IS curve.
B. the degree of gradualism in the government's disinflationary policy.
C. the credibility of the government's disinflationary policy.
D. the slope of the Phillips curve.
Answer: C
You might also like to view...
________ are the largest components of state and local government revenue
A) Individual income taxes and corporate income taxes B) Transfers from federal government and sales taxes C) Individual income taxes and sales taxes D) Transfers from federal government and corporate income taxes E) Corporate income taxes and lottery income
What is division of labor? How does it raise efficiency and productivity?
The upward slope of the supply curve of a good shows:
a. the negative relationship between the price of the good and its quantity supplied. b. the positive relationship between the price of the good and its quantity supplied. c. the negative relationship between the price of the good and the price of its substitute. d. the positive relationship between the price of the good and the price of its substitute.
Suppose that when the price of root beer rises 10%, the quantity of hotdogs demanded falls 5%. This would mean that hotdogs and root beer are
A. substitutes, with a cross price elasticity of 0.5. B. substitutes, with a cross price elasticity of -2.0. C. complements, with a cross price elasticity of -0.5. D. complements, with a cross price elasticity of -2.0.