Which of the following is least likely to result in inflation?
a. A drought in California that causes farm production to fall.
b. The government printing money to finance deficits.
c. A reduction in consumer confidence.
d. Rising instability in oil-producing nations.
Ans: c. A reduction in consumer confidence.
You might also like to view...
Given the information in Figure 18.1, the competitive output in the corbomite industry is:
A) Q0. B) Q1. C) Q2. D) any level as long as price is P0.
Assume a perfectly competitive industry is in long-run equilibrium at a price of $75. If this industry is a constant-cost industry and the demand for the product decreases, long-run equilibrium will be reestablished at a price
A. less than $75. B. greater than $75. C. of $75. D. either greater than or less than $75 depending on the magnitude of the decrease in demand.