1. Under five years of this government, we have worked hard to reduce the rate of inflation. So for the last three years, the rate of inflation has been falling! Meanwhile, over the last three years wages have been rising! 2. What's more, the opposition complained that in our first two years in power, we reduced police numbers by 30%. Well, I've got news for them: we have not only stopped them falling, but since then, we've increased police numbers by 35%! 3. Not only that, but we are spending more money on the health service than ever before! Billions and billions of pounds more! 4. We've also cracked down on crime: the number of convictions for burglary has halved in the last year, which must mean that there are fewer burglaries! 5. Homelessness and unemployment are two other things we are deeply concerned about. So I'd like to announce that more people than ever now own their own homes and have jobs. 6. And a last bit of good news: just look at how the number of hospital appointments has grown since we took office!

1. Under five years of this government, we have worked hard to reduce the rate of inflation. So for the last three years, the rate of inflation has been falling! Meanwhile, over the last three years wages have been rising! 2. What's more, the opposition complained that in our first two years in power, we reduced police numbers by 30%. Well, I've got news for them: we have not only stopped them falling, but since then, we've increased police numbers by 35%! 3. Not only that, but we are spending more money on the health service than ever before! Billions and billions of pounds more! 4. We've also cracked down on crime: the number of convictions for burglary has halved in the last year, which must mean that there are fewer burglaries! 5. Homelessness and unemployment are two other things we are deeply concerned about. So I'd like to announce that more people than ever now own their own homes and have jobs. 6. And a last bit of good news: just look at how the number of hospital appointments has grown since we took office!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which statement best describes U.S. inflation between 1982 and 2000? A. It was virtually nonexistent. It was consistently high, often climbing into the double digits. B. It was widely variable, swinging from zero to over 10%. C. It was neither very high nor very low.
Your company has been trying to grow since its creation in the year 2000, and the board of directors is dissatisfied that your department’s advertising budget has increased 40% since the year 2000 but that little growth has occurred as a result. What argument might you make in your defense? Select one: a. While the nominal value of the budget has grown 40%, the real value (adjusted for inflation) has dropped sharply, so we have been lucky to even stay in business over these years. b. While the real value of the budget has grown 40%, the output of the national economy (as indicated by the mild growth of the GDP deflator) has been stagnant, so our lack of company growth is no surprise. c. While the nominal value of the budget has increased 40%, the real value has increased even greater than that, so the lack of growth has to be attributable to another department of the company. d. While the nominal value of the budget has grown 40%, the real value (adjusted for…
1) Whether you gain or lose during a period of inflation depends on: a) how the price increases affect government purchases of goods. b) whether the economy is expanding or contracting. c) whether you save or not. d) whether your income rises faster or slower than prices of the things you buy. 2) A real wage that does not keep pace with inflation implies: a) a decrease in purchasing power. b) a decrease in nominal wages. c) a decrease in nominal wages after inflation. d) an increase in the inflation adjusted real wage.
In the graph you've just explored, what is the inflation rate if the unemployment rate is 8 percent? _____ percent per year >>> Answer to 1 decimal place. Thanks Screenshot attached
How long would it take for the price level to double if inflation persisted at the following percentages? Instructions: Enter your answers as a whole number. a. 2 percent per year: years b. 5 percent per year: years c. 10 percent per year: years
a. Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle. b. 1. Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%.Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses. 2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million.Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed.Calculate Australia’s labor force and the number of people in the civilian population who were not in…
Which of the following economic changes are consistent with cost-push inflation? (More than one may apply) A. An increase in the price level B. A sudden and sharp decline in the quantity of money issued by the central bank C. Rising unemployment
High inflation rates are considered detrimental to a country's economy. Please describe and discuss the 2 major reasons that may induce a particular product seller to raise its product price. Please discuss and describe how high inflation levels may affect negatively participants in the 2 major groups of economic decision-makers.
All of the following help an economy to get rid of persistent inflation, EXCEPT which one? O Price and wage control. Raise tax to reduce fiscal deficit. Maintain an independent central bank. Keep the growth rate of money low.