To explain the long-run determinants of the price level and the inflation rate, most economists today rely on the
a. quantity theory of money.
b. price-index theory of money.
c. theory of hyperinflation.
d. disequilibrium theory of money and inflation.
a
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Refer to Figure 3.2. Which assumption concerning preferences do Alvin's indifference curves violate?
A) Diminishing marginal rates of substitution B) Transitivity of preferences C) More is preferred to less D) Completeness E) both A and C
Which of the following grew rapidly during the years following the passage of the Medicare and Medicaid programs?
a. the share of healthcare expenditures financed by third parties b. the prices of healthcare relative to the prices of other goods and services c. expenditures on healthcare as a share of the economy d. all of the above
Which of the following is not correct?
a. When developing economic theories, graphs offer a way to visually express ideas that might be less clear if described with equations or words. b. Graphs are one way of expressing the relationships among variables. c. When studying the relationship between two economic variables, graphs allow economists to draw indisputable conclusions about causes and effects. d. When analyzing economic data, graphs provide a powerful way of finding and interpreting patterns.
In the basket of goods that is used to compute the consumer price index, which of the following categories of consumer spending is the largest?
a. education & communication b. food & beverages c. medical care d. recreation