If Wages and Prices Were Fully Indexed

question 50

Multiple Choice

If wages and prices were fully indexed,

• A)there would be less inflation following an adverse supply shock
• B)inflation could always be perfectly anticipated
• C)inflation arising from money expansion could be prevented
• D)the economy would have difficulty adjusting to supply shocks since real wages could not adjust easily
• E)politicians would be more likely to fight inflation vigorously

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Definitions:

Recombinant Organism

An organism that has been genetically engineered to contain and express genes from another species.

DNA Ligase

An enzyme that facilitates the joining of DNA strands together by catalyzing the formation of a phosphodiester bond between them.

Plasmid

A plasmid is a small, circular, double-stranded DNA molecule found in bacterial cells and some eukaryotes, often carrying genes that provide antibiotic resistance or other advantages to the cell.

PCR

Polymerase Chain Reaction, a laboratory technique used to amplify segments of DNA for analysis.