State whether the following are true, false, or uncertain, and provide reasons for your answers. Use appropriate diagrams and/or equations, where relevant, to aid your explanations: a) Too much economic stimulus in an economy might not lead to job creation, but simply rising inflation over time. b) The development of a positive bargaining gap occurs when unemployment is above the inflation-stabilizing rate. c) Stable inflation suggests that all goods and services have experienced steady increases in their prices over the reference period. d) An increase in a household's ability to borrow would lead to an increase in their marginal propensity to consume. e) The only way to reduce government debt in an economy is for the government to continuously run budget surpluses. f) Countries with aging populations often see decreases in their debt-to-GDP ratios, ceteris paribus. g) Increasing the degree of central bank independence over time has made it harder for them to resist short-term political pressure leading to upward pressure on inflation.
Question: 1
State whether the following are true, false, or uncertain, and provide reasons for your answers. Use appropriate diagrams and/or equations, where relevant, to aid your explanations:
a) Too much economic stimulus in an economy might not lead to job creation, but simply rising inflation over time.
b) The development of a positive bargaining gap occurs when
c) Stable inflation suggests that all goods and services have experienced steady increases in their prices over the reference period.
d) An increase in a household's ability to borrow would lead to an increase in their marginal propensity to consume.
e) The only way to reduce government debt in an economy is for the government to continuously run budget surpluses.
f) Countries with aging populations often see decreases in their debt-to-
g) Increasing the degree of central bank independence over time has made it harder for them to resist short-term political pressure leading to upward pressure on inflation.
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