Multiple Choice
If inflation were high in some country and lawmakers in that country passed a law requiring the central bank to maintain a low level of inflation,it is likely that
A) the short-run Phillips curve would shift right and the cost of disinflation would rise.
B) the short-run Phillips curve would shift right and the cost of disinflation would fall.
C) the short-run Phillips curve would shift left and the cost of disinflation would rise.
D) the short-run Phillips curve would shift left and the cost of disinflation would fall.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Some economists believe that there are positives
Q17: If inflation falls,<br>A)people choose to put in
Q18: When wages are set by contract,inflation<br>A)reduces real
Q19: Inflation reduction has the lowest cost when
Q20: Which costs of inflation could the government
Q22: A permanent reduction in inflation would<br>A)permanently reduce
Q24: Higher inflation results in<br>A)more frequent price changes
Q25: Proponents of zero inflation argue that a
Q26: An economist would be more likely to
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