Author Question: Suppose an economy had an inflation rate of 7 percent last year. This has decreased to 6 percent ... (Read 110 times)

Chelseaamend · **on:** Jun 30, 2018

Suppose an economy had an inflation rate of 7 percent last year. This has decreased to 6 percent this year. This means that the economy is:
a. suffering from hyperinflation.
b. experiencing deflation.
c. experiencing disinflation.
d. experiencing a wage-price spiral.
e. experiencing a decrease in real wage.

Question 2

Negative income tax plans have the disadvantage of decreasing work incentives in comparison to existing welfare programs without work incentives.
a. True
b. False
Indicate whether the statement is true or false