The example of an inflationary gap in 2006-2007 suggested that the economy adjusts
a. rapidly to inflationary gaps by lowering prices.
b. rapidly to inflationary gaps by raising prices.
c. slowly to inflationary gaps by lowering prices.
d. slowly to inflationary gaps by increasing inflation.
d
Economics
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According to the above table, what is the absolute price elasticity of demand when price rises from $5.50 to $6?
A) 4.00 B) 2.23 C) 1.21 D) 0.50
Economics
Which of the following groups would be most adversely affected by food aid?
a. Manufacturers in the country providing aid b. Government in the country providing aid c. Government in the country receiving aid d. Citizens in the country providing aid e. Farmers in the country receiving aid
Economics