Inflation reduction has the highest cost when the efforts are
a. credible so that the sacrifice ratio is low.
b. credible so that the sacrifice ratio is high.
c. unexpected so that the sacrifice ratio is high.
d. unexpected so that the sacrifice ratio is low.
c
You might also like to view...
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
It is easier for a monopolist to price discriminate between groups for a service than for a good because
A) it is easier to calculate average willingness to pay for services. B) it is easier to distinguish between groups of customers for services than customers for goods. C) it is easier for consumers to resell goods than resell services. D) customers for goods usually do not differ with respect to their average willingness to pay.
In a perfectly competitive market,
a. no firm can earn an economic profit b. it is possible for each firm to earn an economic profit in the short run c. firms determine the market price and consumers determine the market quantity d. consumers determine the market price, and firms decide how much to produce at that price e. the market demand curve is a horizontal line at the market price
The Aluminum Company of America (Alcoa) had a monopoly until the 1940s because
A) it was a public enterprise. B) it had a patent on the manufacture of aluminum. C) the company had a secret technique for making aluminum from bauxite. D) it had control of almost all the available supply of bauxite.