The Japanese economy has been consistently weak throughout the 1990s. This has caused a slight deflation, illustrating the
A. negligible cost of eliminating inflation.
B. very slow operation of the economy’s self-correcting mechanism.
C. tendency of inflation to accelerate during recessions.
D. rapidity with which inflation can be stopped.
Answer: B
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Indicate whether the statement is true or false
Robert is interviewing a candidate for employment in his company and believes that the applicant is highly intelligent. If Robert only pays attention to information that is consistent with his belief, a(n) ________ will occur
A) confirmation bias B) attentional bias C) attenuation bias D) distinction bias
Suppose the federal government is considering alternatives to increase the level of real GDP in order to reduce unemployment. It can only do one of the following. Which will have the smallest impact on the federal budget?
a. decreasing transfer payments b. increasing government spending c. increasing transfer payments d. decreasing government spending
Which of the following usually leads to currency appreciation?
a. galloping inflation b. relatively low interest rates c. declining real GDP d. fixed exchange rates