Increases in Inflation Redistribute Resources from ________-Spending to ________-Spending Households

question 62

Multiple Choice

Increases in inflation redistribute resources from ________-spending to ________-spending households and hence, ________ short-run equilibrium output.

• A)high; low; increase
• B)low; high; increase
• C)high; low; decrease
• D)low; high; decrease

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Definitions:

Accountability

The obligation to explain, justify, and take responsibility for one's actions to someone who is entitled to ask.

Evaluation

The systematic determination of a subject's merit, worth, and significance, using criteria governed by a set of standards.

Responsibility

The duty or obligation to perform or complete a task, often with an understanding of the moral, legal, or social consequences of failure to do so.

Conflict Resolution

The process of resolving a disagreement or dispute between parties in a constructive manner.