Most economists favor less interference in the marketplace by government because

ID: 1124274 • Letter: M

Question

Most economists favor less interference in the marketplace by government because

economists ignore the positive impact of government because they focus only on GDP.

the government is too corrupt.

they believe that corporations and individuals are in a better position to know which investments are most likely to pay off.

economists have a lot of money invested in the stock market, and they don't want the government to spoil their investments.

Expected inflation is

the inflation rate that governments require from year to year.

the inflation rate that consumers and businesses expect will hold for some time in the future.

the inflation rate that is based on GDP growth.

the inflation rate minus the actual growth rate.

1> they believe that corporations and individuals are in a better position to know which investments are most likely to pay off.

Reason

Market functions better without government interference unless there is an imperfection or asymmetry in the market.

2> the inflation rate that consumers and businesses expect will hold for some time in the future.

Reason

Expectation is done by the household and the business.

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