Some economists believe that inflation could actually help reduce unemployment in the short-run.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Rapid population growth leads to age dependency which refers to:
a. a reduction in the amount of capital per worker, which lowers the productivity of labor.
b. shifts in government expenditures from the country's infrastructure to education and health care.
c. a large number of dependent children whose consumption requirements lower the ability of the economy to save.
d. high mortality rates of middle-aged workers that reduces the average amount of investment spending.
e. survival of the elderly who are dependent on government welfare support.
A Tibetan wolf killed in 1938. Note the proportionately short legs
Cause of Inflation
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