One of the reasons macroeconomists have concerns about inflation is that inflation causes
A) real GDP to rise.
B) nominal GDP to fall.
C) wages to rise as fast as prices.
D) real GDP to exceed nominal GDP.
E) none of the above
E
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When a central bank targets inflation, its inflation targets are usually specified as
A) a specific inflation rate target, for example, 1 percent. B) the short-term interest rate minus 2 percent. C) a point on the short-run Phillips curve. D) a range for the inflation rate. E) deviations from the inflation rate.
Which of the following statements about the Earned Income Tax Credit Program (EITC) program is FALSE?
A) On net the EITC discourages work by low- or moderate- income earners more than it rewards work. B) It provides rebates of Social Security taxes to low-income workers. C) Recipients who receive benefit payments under Social Security are also eligible for SSI. D) It is the largest poverty reduction program in the U.S..