Which of the following is true about inflation?
a. It reduces the cost-of-living of the typical worker.
b. It is measured by changes in the cost of a typical market basket of goods between time periods.
c. It causes the purchasing power of a dollar to rise.
d. It has no effect on real resources.
B
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Describe the product cycle, including addressing the various inputs that are required over time and the resulting production location decisions
What will be an ideal response?
If labor is immobile between two countries, changes in relative demand for goods and services may pose major economic problems
A) whether exchange rates are flexible or fixed. B) but the problems will not be as significant as they would be if labor were mobile. C) when exchange rates are flexible, but not when they are fixed. D) when exchange rates are fixed, but not when they are flexible.