What is not likely to be a major problem for businesses during a period of ongoing inflation?
(A) They cannot anticipate their costs.
(B) They do not know when the inflation will stop.
(C) They have difficulty hiring help.
(D) Their money loses its value.
Ans: (C) They have difficulty hiring help.
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Refer to Figure 12.2. Suppose the economy is initially above potential GDP, and the actual inflation rate is greater than the expected inflation rate
If the Fed wants to achieve the goal of price stability, this would be represented by a movement on the Phillips curve from A) point A to point B. B) point C to point B. C) point B to point A. D) point A to point B to point C.
What is the real GDP in year 1 using base year 2?
A) $418. B) $300. C) $360. D) $338.
At the end of the 18th century, approximately _______ percent of the American people earned a major portion of their income by farming
a. 25 b. 50 c. 70 d. 90
As the marginal propensity to consume (MPC) increases, the spending multiplier:
a. increases. b. decreases. c. remains constant. d. becomes indefinable.