Which of the following is NOT a potential problem with deflation?
A) Interest rate falls will over- stimulate the economy.
B) Expectations of future price falls can cause a fall in aggregate demand.
C) Debt burdens may rise as prices fall.
D) Employment levels may fall.
Correct Answer:
Verified
Q20: The long- run aggregate supply curve is
Q21: The aggregate demand curve will shift outwards
Q22: The aggregate demand curve will shift inwards
Q23: Suppose the Australian economy is initially in
Q24: Deflation is:
A) continuing falls in the general
Q26: Demand- pull inflation is caused by:
A) not
Q27: The term 'rational expectations' means:
A) people make
Q28: The aggregate demand curve:
A) is horizontal
B) slopes
Q29: Cost- push inflation is the result of:
A)
Q30: Which of the following nations has experienced
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