Unpredictable inflation can cause businesses to:
A. increase production due to expecting future price level changes.
B. restrict output and stockpile inventory.
C. have a hard time planning future production.
D. cease production until they know how to adjust for inflation.
Answer: C
You might also like to view...
According to new growth theory, growth
A) occurs when real GDP greater than the subsistence level. B) depends on the population growth rate. C) is unending. D) ends when competition disappears. E) cannot be sustained without government hel
The above figure illustrates the market for corn. If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?
A) a decrease in the number of corn growers B) a decrease the price of wheat, a substitute in production for corn C) an increase in the cost of the seed used to grow the corn D) a decrease in buyers' incomes if corn is an inferior good E) an increased belief among buyers that corn is healthy
If an import-competing firm is the only domestic producer of a good, then a transition from autarky to free trade will ________ domestic price, ________ producer surplus, ________ consumer surplus, and ________ overall domestic national welfare
A) decrease; decrease; increase; increase B) increase; increase; increase; increase C) decrease; decrease; decrease; decrease D) increase; increase; decrease; decrease E) increase; increase; decrease; increase
The primary distinction between an expenditure that is on budget and an expenditure that is off budget is _____
a. that all off-budget expenditures are entitlements b. that all on-budget expenditures are public goods or quasi-public goods c. that Congress has determined the expenditures should be on budget or off budget d. a and b