Which one of the following statements is correct? (4 marks) A Inflation has definite advantages and should therefore be stimulated. B In deciding on anti-inflation policy, the costs of other economic problems, such as unemployment and a lack of economic growth, should also be considered. C Inflation is such as serious problem that the possible side effects of anti-inflation policies should not even be considered. D Unemployment, inflation, low economic growth and balance of payments problems are all serious macroeconomic problems and therefore there is no need to prioritise when economic policy has to be formulated and implemented – all these problems should be regarded as priority number one.

Which one of the following statements is correct? (4 marks) A Inflation has definite advantages and should therefore be stimulated. B In deciding on anti-inflation policy, the costs of other economic problems, such as unemployment and a lack of economic growth, should also be considered. C Inflation is such as serious problem that the possible side effects of anti-inflation policies should not even be considered. D Unemployment, inflation, low economic growth and balance of payments problems are all serious macroeconomic problems and therefore there is no need to prioritise when economic policy has to be formulated and implemented – all these problems should be regarded as priority number one.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 8PA

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