Price Controls Tend to Be Ineffective in Controlling Inflation Because

question 26

Multiple Choice

Price controls tend to be ineffective in controlling inflation because they

• A)fail to shift the SRAS curve sufficiently far to the right.
• B)suppress inflation rather than eliminate it.
• C)widen the government's budget deficit.
• D)reduce the rate of growth of the money supply.

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Definitions:

Dependent Variable

In statistical modeling, this is the variable being tested and measured to see if it is affected by changes in the independent variables.

Cook's D

A statistic used in regression analysis to identify influential data points that can disproportionately affect the results of the regression.

Leverage

A measure of how far the values of the independent variables are from their mean values.

Regression Results

The outcomes of regression analysis, including the estimated relationships between variables and measures of these relationships' strength and significance.