President Nixon imposed wage and price controls in the early 1970s to curb inflation. Critics argued that the Nixon-imposed controls
a. did not alter the behavior of workers or businesses and therefore could have no long-run effect on curbing inflation
b. worked not only to reduce future expectations of inflation but also economic growth
c. while significantly changing long-run inflation rates, led to unacceptable rates of deflation
d. was accompanied by large government expenditures
e. helped to further heighten market pressures that already existed
A
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The recent growth records of Japan and Hong Kong during the last 50 years indicate that a nation can grow rapidly without:
a. securely defined property rights. b. adopting modern technology. c. significant capital formation. d. abundant domestic natural resources.
An inflationary output gap is defined to be when the current level of output is:
A. below full employment GDP. B. above full employment GDP. C. equivalent to full employment GDP. D. high enough to cause an unexpected amount of inflation.