An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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Targeting the wealthy in a less-developed country in order to achieve reductions in poverty can drive the wealthy to relocate
a. True b. False
The Economy Tomorrow article titled "Rebuilding America" states that
A. The nation currently spends less than 2 billion hours in traffic delays and it should decline over the next decade. B. The transportation system is keeping up with a growing economy. C. The transportation system is not keeping up with a growing economy. D. None of the choices are correct.
If the Fed wanted to keep inflation in check given the growth rate of the economy, how should they have responded to the financial innovations of the mid to late 1970s and early 1980s in terms of money growth?
What will be an ideal response?
Is inflation a macroeconomic or a microeconomic question? Why?
What will be an ideal response?