Suppose that a central bank reduces the money supply growth rate to disinflate. What does disinflation mean? If people do not alter their inflation expectations, what happens to output and unemployment?
Disinflation means a reduction in the inflation rate. Output would fall and unemployment would rise.
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Suppose the production of cotton causes substantial environmental damage because the pesticides used by cotton farmers often make their way into nearby rivers and streams, and are very harmful to fish and other wildlife. If cotton farmers do not have to pay for the environmental damage caused by the pesticides used to grow cotton, then the market equilibrium price will be ________ and the market equilibrium quantity will be ________.
A. inefficiently low; inefficiently high B. inefficiently low; inefficiently low C. inefficiently high; inefficiently low D. inefficiently high; inefficiently high
If a country - during its entire history - has invested more in the rest of the world than the rest of the world has invested in it, the country is a
A) net borrower. B) debtor nation. C) net lender. D) creditor nation.
Total revenue is equal to
a. price elasticity of demand multiplied by quantity b. price elasticity of demand divided by quantity c. price of the good divided by quantity d. price of the good multiplied by quantity e. price elasticity of demand multiplied by price of the good
We calculate many different kinds of price indexes:
A. to measure how different groups of people in the economy are being affected by changing prices. B. to see how the prices of different groups of goods are changing. C. in order to capture a complete picture of how price changes are affecting the economy. D. All of these statements are true.