Some Economists Have Argued That Inflation During the 1970s Contributed

question 64

Multiple Choice

Some economists have argued that inflation during the 1970s contributed to the U.S.economy's relatively slow growth rate.What is the basis for this view?

• A)Inflation usually lowers employment,thus slowing growth.
• B)If inflation is anticipated,it is particularly harmful because cost of living increases are built into wage settlements,which only worsens the problem.
• C)High and variable inflation rates increased uncertainty,thus making business decisions more difficult.
• D)Lenders were less interested in making short-term loans than in making long-term loans.
• E)Inflation during the 1970s created increased activity on Wall Street,which drew funds that could have been used for truly productive purposes.

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Definitions:

Subtheory

A division or smaller theory that is part of a larger theoretical framework, often focusing on a specific aspect of the broader theory.

Analytical Intelligence

A facet of intelligence proposed by Sternberg as part of his triarchic theory, involving the ability to analyze, evaluate, judge, compare, and contrast information.

Practical Intelligence

Practical intelligence refers to the ability to solve everyday problems by utilizing knowledge gained from experience rather than purely theoretical or technical understanding.

Reasoning Skills

The capacity to think logically, form sound judgments, and solve problems efficiently.