Inflation means that:
A. all prices are rising, but at different rates.
B. all prices are rising and at the same rate.
C. prices on average are rising, although some particular prices may be falling.
D. real incomes are rising.
C. prices on average are rising, although some particular prices may be falling.
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Government controls over market prices frequently "backfire."
a. True b. False Indicate whether the statement is true or false
Mainstream macroeconomics would suggest that fiscal policy
A. has no effect unless the fiscal policy is accompanied by changes in the money supply. B. changes aggregate demand and GDP by changing aggregate expenditures. C. is relatively ineffective because the outcomes are anticipated and offset. D. affects GDP and the price level through changes in aggregate supply.