Multiple Choice
What is the principal reason that economists give for the existence of deflationary and inflationary gaps?
A) Wages are flexible in the short run.
B) Wages are flexible in the long run.
C) Wages are fixed in the long run.
D) Wages are fixed in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
Q197: The federal government increases spending by $50
Q198: Figure 10-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-7
Q199: An inflationary gap exists when consumers and
Q200: The fact that severe fluctuations in inflation
Q201: Figure 10-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-7
Q203: Increases in the availability of natural resources
Q204: At levels of output close to full
Q205: Figure 10-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 10-4
Q206: The reason why inflation reduces the value
Q207: Which of the following is evidence of