When there is high and variable inflation, markets will adjust toward their equilibrium prices and quantities more erratically and slowly. Additionally, many individual markets will experience a _________ chance of surpluses and shortages.
a. greater
b. lower
c. reduced
d. constant
a. greater
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Which of the following is the best definition of openness?
A. The average of imports expressed as a share of GDP. B. The average of goods traded in markets expressed as a share of GDP. C. The average of imports and exports expressed as a share of GDP. D. The average trade balance expressed as a share of GDP. E. The average of exports expressed as a share of GDP.
Sally is shopping for textbooks at the beginning of the semester. What is one reason she might decide to not purchase a textbook?
A) Her expected producer surplus is positive. B) Her expected consumer surplus is negative. C) Her expected consumer surplus is positive. D) Her expected profits are positive.
If the long-run Phillips curve shifts to the left, then for any given rate of money growth and inflation the economy has
a. higher unemployment and lower output. b. higher unemployment and higher output. c. lower unemployment and lower output. d. lower unemployment and higher output.
A rise in interest rates tends to contract the economy by appreciating the currency and reducing net exports.
Answer the following statement true (T) or false (F)