The large budget deficits of the early 1990s resulted in large current account deficits

Which of the following is not a result of government price controls?

A) Some people win and some people lose. B) A deadweight loss will occur. C) Price controls benefit poor consumers but harm producers and wealthy consumers. D) Price controls decrease economic efficiency.

A central bank announces it will decrease the inflation rate by 10 percentage points. People are skeptical of the announcement, but do expect the central bank will reduce inflation by 5 percentage points and so expected inflation falls by 5 percentage points. If the central bank decreases inflation by only 3 percentage points then the unemployment rate will fall

a. True b. False Indicate whether the statement is true or false