Page 133 - Macroeconomics. book docx_Neat

10. Persistent inflation may cause:

• A. Stable income distribution

• B. Higher real wages

• C. Price stability

• D. Loss of confidence in currency

Answer Key

1-A, 2-B, 3-C, 4-D, 5-A, 6-A, 7-A, 8-C, 9-B, 10-D

True or False

1. Inflation reduces purchasing power.

2. Budget deficit always causes economic growth.

3. Recession increases unemployment.

133