When inflation is very low, how do workers and firms adjust their expectations of inflation?
A) They tend to ignore inflation.
B) They are more aggressive in asking for wage and price increases.
C) They rapidly adjust their expectations of inflation downward.
D) They rapidly adjust their expectations of inflation upward.
A
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The supply curve of U.S. dollars shifts leftward. This could have been influenced by ________
A) a rise in the U.S. interest rate differential B) a fall in the expected future exchange rate C) an increase in the U.S. exchange rate D) a decrease in the U.S. exchange rate
If a tax is levied on the sellers of a product, then there will be a(n)
a. downward shift of the supply curve. b. upward shift of the supply curve. c. decrease in quantity supplied. d. increase in quantity supplied.
Winston Churchill once said
a. "The inherent virtue of capitalism is the unequal sharing of blessings. The inherent virtue of socialism is the equal sharing of miseries.". b. "The inherent vice of capitalism is the unequal sharing of blessings. The inherent virtue of socialism is the equal sharing of miseries.". c. "The inherent vice of capitalism is the unequal sharing of blessings. The inherent vice of socialism is the equal sharing of miseries.". d. "The inherent virtue of capitalism is the unequal sharing of blessings. The inherent vice of socialism is the equal sharing of miseries.".
Suppose the economy is in a recession and the Central bank lowers the monetary policy rate. Then
A. Real GDP and the price level will both decrease. B. Real GDP will increase and the price level will decrease. C. Real GDP will decrease and the price level will increase. D. Real GDP and the price level will both increase.