Higher inflation results in
a. more frequent price changes and increased variability of relative prices.
b. more frequent price changes and decreased variability of relative prices.
c. less frequent price changes and increased variability of relative prices.
d. less frequent price changes and decreased variability of relative prices.
a
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Along a short-run Phillips curve when the inflation rate rises,
A) the real wage rate falls and more labor is hired. B) the expected inflation rate falls. C) the expected inflation rate rises. D) the money wage rate falls because the labor market becomes less tight. E) potential GDP decreases.
Which one of the following statements is MOST accurate?
A) In general, consumption demand rises by less than disposable income. B) In general, consumption demand rises by more than disposable income. C) In general, consumption demand rises by more than income. D) In general, consumption demand rises by the same amount as disposable income rises. E) In general, consumption demand rises are unrelated to disposable income rises.
Based on the Taylor rule, from 1965 to 1979, monetary policy was
A) too tight. B) too easy. C) just about right. D) too tight from 1965 to about 1970 and too easy from about 1970 to 1979.
Which of the following would cause prices to fall and output to rise in the short run?
a. Short-run aggregate supply shifts right. b. Short-run aggregate supply shifts left. c. Aggregate demand shifts right. d. Aggregate demand shifts left.