The Reason Why Inflation Can Persist Even After Its Original

question 97

Multiple Choice

The reason why inflation can persist even after its original causes have been removed is that

• A)workers expect wage increases to match increases in labour productivity.
• B)workers are willing to accept wage increases lower than the increase in productivity.
• C)the Bank of Canada ensures that money-supply growth matches growth in real GDP.
• D)inflationary expectations cause the AS curve to continue shifting upwards.
• E)governments embark on a deficit-cutting program.

Understand the role of the Federal Trade Commission in enforcing antitrust laws.

Comprehend the objectives of antitrust laws, particularly in maintaining competition and preventing monopolies.

Distinguish between legal and illegal practices under the Sherman Act, Clayton Act, and the Robinson-Patman Act.

Realize the implications of antitrust law on mergers and acquisitions.

---

Definitions:

Horizontal

Referring to the orientation parallel to the ground or to the bottom and top edges of most two-dimensional objects.

Underground Stem

Plant structures that grow below the soil surface, serving as storage organs and helping in asexual reproduction; examples include rhizomes and tubers.

Detachable Small Plants

Plants that can naturally or artificially separate from the parent plant to propagate asexually and form new individual plants.

Parent Plant

The original plant from which cuttings, seeds, or other reproductive material is taken for the purpose of propagation.