The target rate of inflation for the European Central Bank (ECB) is:
(a) Above 2%.
(b) Below, but close to, 2%.
(c) 0%.
(d) None of the above, because the ECB targets a rate of deflation.
Answer: (b) Below, but close to, 2%.
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Which income maintenance program was started to support the nation's farmers?
A) Supplemental Security Income B) food stamps C) Earned Income Tax Credit program D) AFDC
If the price level in the U.S. decreases, aggregate output demanded: a. decreases because U.S. products become cheaper relative to foreign products
b. decreases because U.S. products become more expensive relative to foreign products. c. increases because U.S. products become cheaper relative to foreign products. d. increases because U.S. products become more expensive relative to foreign products. e. decreases because household wealth and spending in the U.S. decrease.
In the short run, a decline in aggregate demand would be associated with:
a. an inward shift of the Phillips curve. b. an outward shift of the Phillips curve. c. an upward movement along the Phillips curve. d. a downward movement along the Phillips curve. e. no change along the Phillips curve.
How is the dividing line between poverty and nonpoverty measured? Does this method overstate the degree of poverty?