Speculative Inflation Is the Tendency of Prices, Aided by Union-Corporation

question 101

True/False

Speculative inflation is the tendency of prices, aided by union-corporation contracts, to rise during economic expansion and to resist declines during recessions.

---

Definitions:

Civil Aeronautics Board

A former federal agency in the United States responsible for regulating the air transport industry until its deregulation in the early 1980s.

Sherman Act

An 1890 United States antitrust law that outlaws monopolistic practices and promotes competition.

Price-fixing

An illegal agreement among competitors to set prices at a certain level, rather than competing naturally in the market.

Tying Contracts

Agreements where the sale of one product (the tying product) is conditioned on the buyer purchasing another product (the tied product).