If credible low-money-growth policies were continually pursued by the Fed, nominal wages and prices would eventually fall as the economic agents would expect lower inflation rates over time
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
How is the international economy qualitatively different in the first part of the twenty-first century from what it was like in the first part of the twentieth century?
What will be an ideal response?
The short-run supply curve for a firm in a perfectly competitive market is
a. horizontal. b. likely to slope downward. c. determined by forces external to the firm. d. the portion of its marginal cost curve that lies above its average variable cost.
Refer to the above graph, which shows an aggregate demand curve for a hypothetical economy. If the price level is 200, the quantity of real GDP demanded is:
A. $600 billion. B. $700 billion. C. $500 billion. D. $800 billion.
Find the tax multiplier if the MPC is 0.75.
A. ?4. B. ?3. C. 0.33. D. 3.