Which of the following is a danger of high rates of inflation?
a. Price changes encourage long-term contracts at the expense of short-term contracts.
b. Rapid price changes reduce uncertainty.
c. Inflation increases the real value of assets, such as stocks and bonds.
d. Inflation will encourage people to spend less time producing and more time trying to protect the value of their assets.
D
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In the United States, between 1961 and 2011, there has been
i. a consistent , non-changing growth rate of potential GDP per person. ii. an increase in the standard of living based on real GDP per person. iii. fluctuations in real GDP per person around potential GDP per person. A) ii only B) i, ii and iii C) i and ii only D) ii and iii E) i only
Refer to Figure 9-1. Suppose the government allows imports of leather footwear into the United States. The market price falls to $18. What is the value of domestic producer surplus?
A) $0 B) $40 C) $320 D) $360
Which of the following is a reason why the union wage gap might underestimate the actual effect unions have on wages?
A. Unions typically attract the most productive workers to the application pool. B. The union wage gap can be overestimated but never underestimated. C. Nonunion firms may pay higher wages in order to prevent its workers from unionizing. D. Nonunion jobs will have excess labor available to them because firms will restrict entry into union jobs, and competition for this excess labor competes down the observed nonunion wage. E. Unions target high-paying firms.
Which of the following groups of countries were members of NAFTA?
A. Japan, Canada, and Mexico B. the United States, Japan, and Mexico C. the United States, France, and Germany D. the United States, Canada, and Mexico