Which of the following statements is/are correct? (4 marks) i. One way to combat demand-pull inflation is if the Reserve Bank raises interest rates. ii. Demand-pull inflation usually leads to increased prices and increased unemployment. iii. Demand-pull inflation can be initiated by a cut in the marginal tax rate. A i and ii B i and iii C ii and iii D Only statement iii is correct
Which of the following statements is/are correct? (4 marks) i. One way to combat demand-pull inflation is if the Reserve Bank raises interest rates. ii. Demand-pull inflation usually leads to increased prices and increased unemployment. iii. Demand-pull inflation can be initiated by a cut in the marginal tax rate. A i and ii B i and iii C ii and iii D Only statement iii is correct
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Six Debates Over Macroeconomic Policy
Section: Chapter Questions
Problem 4QCMC
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8. Which of the following statements is/are correct? (4 marks)
i. One way to combat
ii. Demand-pull inflation usually leads to increased prices and increased unemployment.
iii. Demand-pull inflation can be initiated by a cut in the marginal tax rate.
A i and ii
B i and iii
C ii and iii
D Only statement iii is correct
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