Higher inflation
a. causes firms to change prices less frequently and makes relative prices less variable.
b. causes firms to change prices less frequently and makes relative prices more variable.
c. causes firms to change prices more frequently and makes relative prices less variable.
d. causes firms to change prices more frequently and makes relative prices more variable.
d
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During the Reagan administration, the Laffer curve was used to ague that:
a. the supply-side effects of tax cuts are relatively small. b. discretionary tax cuts are unwise because they create stagflation. c. lower income tax rates could increase tax revenues. d. a "flat tax" would simplify the tax code and stimulate economic growth.
An individual's demand curve for a good is derived by varying the
a. income level and observing the resulting total utility derived from both goods. b. price of one good and observing the resulting quantities of the other good. c. budget line to the left and calculating the loss in total utility. d. price of one good and observing the resulting quantities demanded of that good.