Rent-seeking activities have been a major problem in the high-growth Asian economies and contributed greatly to the Asian financial crisis

In August 1971, President Nixon implemented price and wage controls to combat inflation. Which of the following statements best describes the change in price levels after the price controls policy was implemented?

a. Inflation remained almost the same for many years. b. The rate of inflation decreased and remained around 3 percent throughout 1972. c.. The rate of change in prices fell below zero in mid-1970s. d. Implementation of controls led to an increase in inflation rates in 1972.

The costs to firms of changing prices are called

A) redistribution costs. B) menu costs. C) anticipation costs. D) money illusion costs.