Multiple Choice
Which of the following is true of an economy in the long run?
A) The economy operates on its production possibility frontier.
B) The rate of inflation is expected to be very high.
C) Wage rates increase faster than inflation rates.
D) There is a high level of unemployment in the economy.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: According to the quantity theory of money,
Q3: With the discovery of oil or gas
Q4: The natural rate of unemployment varies with
Q5: While inflation reduces real values, deflation increases
Q6: Inflation targeting in the face of adverse
Q8: In the short run, prices and wages
Q9: Active fiscal and monetary policy is required
Q10: What is meant by leverage?<br>A) It is
Q11: In the long run, real wages are
Q12: Consider an economy that is operating at