If Inflation Were High in Some Country and Lawmakers in That

question 21

Multiple Choice

If inflation were high in some country and lawmakers in that country passed a law requiring the central bank to maintain a low level of inflation,it is likely that

• A)the short-run Phillips curve would shift right and the cost of disinflation would rise.
• B)the short-run Phillips curve would shift right and the cost of disinflation would fall.
• C)the short-run Phillips curve would shift left and the cost of disinflation would rise.
• D)the short-run Phillips curve would shift left and the cost of disinflation would fall.

Calculate and interpret common financial ratios such as current ratio, quick ratio, inventory turnover, accounts receivable turnover, and times interest earned.

Understand the significance of changes in financial statement items over time.

Apply horizontal and vertical analysis to assess a company's financial health.

Recognize the importance of comparing financial data across different companies.

---

Definitions:

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

Grocery Products

Items that are sold by grocers, including food, beverages, household supplies, and other consumables.

Over-Capacity

occurs when a business or economy has more goods or services available than there is demand for them, often leading to inefficiencies and reduced prices.

Market Type

A classification that describes the nature and characteristics of a market, based on its competition level, participants, and structure.