After 1975, the U.S. economy continued to experience high inflation ________
A) mainly because the public expected policymakers to continue their expansionary efforts, and this led to increases in inflation expectations
B) most likely of the cost-push kind
C) until a very aggressive commitment to anti-inflationary monetary policy helped end this Great Inflation period
D) all of the above
E) none of the above
D
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Which one of the following statements is TRUE for BOTH perfect competition and monopolistic competition?
A) Each type of firm faces a downward sloping demand curve. B) Each type of firm produces a homogeneous product. C) In the long run, firms in both industries make zero economic profit. D) Each type of firm competes on product quality and price.
Recent evidence regarding the exchange-rate pass-through effect in the U.S. reflects a declining trend. How can this be explained?
What will be an ideal response?