Which of the following about inflation is true?
a. Anticipated inflation is an increase in the price level that comes as a surprise, at least to most individuals.
b. Unanticipated inflation is a change in the price level that is widely expected.
c. Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy.
d. Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.
C
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In the theory of consumer choice, when a person is choosing which good or service to consume, how does he or she select the units of good or service to consume? a. The person selects the good or service based on need
b. The person selects the units of a good or service that generates the greatest marginal utility. This process continues until there budget is spent. c. The person selects the units of a good or service that generates the greatest marginal utility per dollar spent. This process continues until the person's budget is spent. d. The person randomly selects what they buy until the budget is spent.
A restaurant that has market power can
a. minimize costs more efficiently than its competitors. b. influence the market price for the meals it sells. c. reduce its marketing budget more than its competitors. d. ignore profit-maximizing strategies when setting the price for its meals.