The government of a DVC may purposely cause inflation because:
A. a rapid rate of inflation attracts private foreign capital into a DVC.
B. there is conclusive evidence that inflation discourages people from having large families.
C. this will strengthen the nation's position in international markets.
D. inflation works like taxation in that it may release resources from consumption so that they
can be invested.
D. inflation works like taxation in that it may release resources from consumption so that they
can be invested.
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What is one way to measure technological progress?
(A) Any increases in labor minus increases in capital. (B) Total growth plus increases in capital and labor. (C) Total growth minus increases in capital and labor. (D) Any increases in capital minus increases in labor.
An autonomous monetary policy easing temporarily ________ real interest rates and ________ aggregate output in the short run, but in the long run real interest rates and aggregate output return to the equilibrium levels
A) reduces; raises B) reduces; lowers C) increases; lowers D) increases; raises