Inflation That Is Fully Anticipated by Workers, Firms, and Consumers

question 53

Multiple Choice

Inflation that is fully anticipated by workers, firms, and consumers

• A)is hard to predict.
• B)leads to reductions in real incomes for all workers.
• C)improves the efficiency of the price system.
• D)does not impact the purchasing power of individuals whose incomes are fully indexed to inflation.
• E)has no real or nominal effects in the economy.

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