The Intent of Indexing Is To

question 34

Multiple Choice

The intent of indexing is to:

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

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Definitions:

Product Liability

The legal liability of manufacturers, wholesalers, or retailers to consumers, users, and bystanders for damages or injuries suffered because of defects in goods sold.

Noneconomic Damages

Compensation awarded in a lawsuit for losses that do not have a direct monetary value, such as pain and suffering, loss of companionship, or emotional distress.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability.

Disclaimer

A term in a contract whereby a party attempts to relieve itself of some potential liability associated with the contract. The most common example is the seller’s attempt to disclaim liability for defects in goods that it sells.