The Intent of Indexing Is to

question 91

Multiple Choice

The intent of indexing is to

• A)raise tax revenue automatically during inflation.
• B)shift the short-run Phillips curve to the right.
• C)take most of the sting out of inflation.
• D)reduce inflation gradually.

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Definitions:

World Bank

An organization established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries; formally known as the International Bank for Reconstruction and Development.

Underdeveloped

Refers to countries or regions with low levels of industrialization, infrastructure, and income per capita compared to other countries.

Developing Countries

Nations with a lower living standard, undeveloped industrial base, and low Human Development Index relative to other countries.