Multiple Choice
Which of the following will lead to sustained inflation?
A) the imposition of a new sales tax
B) the sudden doubling of a key raw materials price
C) a new payroll tax that raises firms' unit labour costs
D) persistent expectations of continued inflation
E) an early frost that damages the agricultural harvest
Correct Answer:

Verified
Correct Answer:
Verified
Q69: Suppose we know the following information about
Q70: A leftward shift in the AD curve
Q71: The three figures below show the phases
Q72: "Supply inflation" refers to<br>A)inflation arising from a
Q73: The act of "monetary validation" by a
Q75: The Phillips curve originally appeared to demonstrate
Q76: If the NAIRU is 8% and the
Q77: Suppose we know the following information about
Q78: A leftward shift of the AD curve
Q79: Assume the economy is currently in long-run