Union contracts with built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are:
a. inappropriate ways of combating inflation.
b. examples of bracket creep.
c. means of implementing fiscal policy.
d. steps that can be taken to decrease the adverse impacts of inflation.
e. examples of failed discarded policies of the 1970s.
d
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Suppose there is an increase in autonomous consumption. Specifically, suppose c0 increases where C = c0 + c1YD. This increase in autonomous consumption will cause which of the following to increase?
A) equilibrium income B) equilibrium disposable income C) demand D) all of the above E) none of the above
If both supply and demand simultaneously decrease,
A. the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate. B. the market clearing price definitely rises, and the equilibrium quantity definitely falls. C. the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate. D. the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.