A Central Policy Concern About Inflation Is to See That

question 97

Multiple Choice

A central policy concern about inflation is to see that it:

• A)does not become built into expectations.
• B)does not redistribute income.
• C)does redistribute income.
• D)does become built into expectations.

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Definitions:

Government

The organized system or group of people governing an organized community, often a state, managing its public policy and affairs.

Lags

Delays in the effect of economic policies or other changes in the economy, which can affect the timing and efficiency of economic outcomes.

Discretionary Fiscal Policy

Fiscal measures, such as government spending and taxation, actively applied by a government to influence the economy, especially to counteract recession or control inflation.

Inflation

The rate at which the widespread price level of goods and services rises, impairing the purchasing power.