The answer is D. Gather information. Took the test and it was correct.
The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.
<h3>Why is a 0% inflation target risky?</h3>
If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.
When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.
Options for this question include:
a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.
b. Moderate to high inflation is popular among consumers.
c. A 0% inflation target could lead to deflation
Find out more on deflation at brainly.com/question/13562161.
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Answer:
A. The market clearing price of the tickets is more than $480.
Explanation:
Market-clearing price is a level where the quantity demanded of a product matches or the quantity supplied. At this price, A product or service does not experience any surplus or shortages. It is the price where the demand curve and the supply curve intersect. The market-clearing price is the same as the equilibrium price.
As the price of $480, the demand for the show is at 6000, but supply is at 4000. There is a surplus in demand. The price of $480 is attractive to more people than supply can handle. Matching supply and demand would require the price to be set above the $480.
