In the long run, the inflation rate
A) must be equal to the natural unemployment rate.
B) can take on any value.
C) is equal to the natural inflation rate.
D) is zero.
E) cannot be negative.
B
You might also like to view...
The table above gives the CPI basket for 2015. Suppose that 2015 is the reference base period
a) What is the cost of the CPI basket in 2015? b) What is the cost of the CPI basket in 2016? c) What is the CPI for 2015? d) What is the CPI for 2016?
Discuss the determinants of a nation's exchange rate value for its currency in foreign exchange markets. What happens to a nation's balance of trade if the nation's currency appreciates? Why?
What will be an ideal response?
The intersection of aggregate demand and long-run aggregate supply identify the price level at which total planned
A. real expenditures equal total planned production. B. export spending equals total planned import spending. C. government spending equals total planned tax revenues. D. real expenditures equal actual nominal GDP.
Which of the following would increase the size of the government purchases multiplier?
A) an increase in the tax rate B) an increase in the quantity of imports purchased by households from an increase in income C) a decrease in the amount of consumption spending by households from an increase in income D) a decrease in the amount saved by households from an increase in income