Suppose you sell surfboards for a living, and you expect the price of surfboards to increase at the same rate as inflation; you adjust your prices accordingly. If this does not occur, then it must be true that:
A) the price of surfboards is changing at a rate that is different from what was expected.
B) the inflation rate is different from what was expected.
C) both the price of surfboards and the inflation rate are different from what was expected.
D) the relative price of surfboards is changing.
Correct Answer:
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Q16: Inflation redistributes income from people who do
Q17: Inflation has both benefits and costs.
Q18: One way to measure asset inflation is
Q19: Asset inflation has a danger of:
A)obscuring goods
Q20: Economists who accept the quantity theory of
Q22: Inflation frees policy makers from:
A)the 2.5 percent
Q23: Asset deflation generally:
A)is more harmful than the
Q24: Before the financial crisis of 2008:
A)the 2.5
Q25: Policy makers:
A)like inflation because it allows individuals
Q26: Inflation:
A)has only costs.
B)has both benefits and costs.
C)just
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