The acceleration hypothesis states that
A) if a recessionary gap is not closed, unemployment will tend to accelerate.
B) capital investment is the primary cause of inflation.
C) if an economy is growing, inflation will grow at an ever- increasing rate.
D) monetary validation causes inflation.
E) when the central bank holds an inflationary gap constant, inflation will tend to accelerate.
Correct Answer:
Verified
Q62: "Demand inflation" refers to
A)the inflation that results
Q63: Increases in money wages in the economy
Q64: Suppose the actual rate of inflation in
Q65: Assume your salary is $2000 per month
Q66: "Supply inflation" refers to
A)the increase in the
Q68: Average wages in Canada have increased each
Q69: Suppose that an increase in world oil
Q70: If a central bank is to successfully
Q71: Other things being equal, unit costs will
Q72: The reason why inflation can persist even
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents