Most Economists Consider the Case for Jawboning to Control Inflation

question 33

Multiple Choice

Most economists consider the case for jawboning to control inflation is strongest when this policy is used:

• A) for an extended period of time.
• B) in combination with a credible threat against a firm's profits.
• C) by a president who has no credible threat against a firm's profits.
• D) to increase the minimum wage.

---

Definitions:

Demand Segmentation

The process of dividing a market into distinct subsets of customers according to different needs, characteristics, or behaviors, who might require separate products or marketing mixes.

Bubbles

Economic phenomena characterized by a rapid increase in asset prices followed by a sharp decline, often due to speculative trading.

Lawrence Welk

An American musician, accordionist, bandleader, and television impresario known for hosting the long-running TV series "The Lawrence Welk Show".

Maximize Profits

The process by which a firm decides on the output level and price of goods or services to achieve the highest possible profit.