10. If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years,the sacrifice ratio isa. 1.b. 2.c. 3.d. None of the above is correct.13. Means-tested government benefits base benefits ona. a household's wealth and are an incentive to save.b. a household's wealth and are a disincentive to save.c. the current interest rate and are an incentive to save.d. the current interest rate and are a disincentive to save.14. Which of the following is correct?a. No forms of capital income are taxed twice.b. The tax code cannot be rewritten to provide greater incentive to save.c. Means-tested benefits increase the incentive to save.d. There is a correlation between national savings rates and measures of economic well-being.16. Which of the following does the U.S. currently have?a. means-tested government benefits and tax laws that tax capital income only onceb. means-tested government benefits and tax laws that tax some capital income twicec. tax laws that tax capital income only once, but not means-tested government benefitsd. tax laws that tax some capital income twice, but not means-tested government benefits

The sacrifice ratio is an economic concept that measures the cost of reducing inflation through…

10. If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years, the sacrifice ratio is a. 1. b. 2. c. 3. d. None of the above is correct.

10. If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years, the sacrifice ratio is a. 1. b. 2. c. 3. d. None of the above is correct.

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

(a) What events of the 1970s and 1980s made economists believe that the shortrun relationship between inflation and unemployment was unstable (not fixed and permanent)? (b) Explain, using a diagram(s) and the concept of stagflation, the relationship between shifts in the SRAS curve and the position of the short-run Phillips curve.
Unanticipated inflation Unanticipated inflation penalises: A. those earning incomes that are taxed in nominal terms B. those who hold cash C. those who lend money at a fixed interest rate D. those earning incomes that are taxed in nominal terms, those who hold cash and those who lend money at a fixed interest rate
Negative real interest rates occur when the inflation rate is greater than the nominal interest rate. True or false? a. False b. True
Demand-pull inflation arises due to Part 2 A. a higher price level. B. a decrease in the short-run aggregate supply. C. a depreciation of the US$. D. a decrease in the aggregate demand. Part 3 Which of the following would create demand-pull inflation? Part 4 A. An increase in household income. B. A decrease in wages paid to workers. C. Increased international trade barriers. D. An increase in the real rate of interest.
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
Guy Ferrell, a student who lives in the country Paragon, observes that analysts are cutting their growth forecasts for the economy for the coming year. Most of them based their analysis on the fact that the level of inflation in the economy would adversely affect economic growth. However, Guy looks up the weekly inflation data for the past couple of months and finds that inflation has been stable and low. Which of the following, if true, would explain the analysts' predictions? A. The Producer Price Index has been steadily increasing over the past few months. B. A recent revision of the previous year's CPI data showed that it was overstated by one percentage point. C. The Purchasing Manager's Index, published by a supply-chain management firm in Paragon has been stable for the past couple of months. D. The government recently increased its growth projections for the year by 100 basis points. E. Most of Paragon's trade partners have…
True or flase questions. Need asap. I put the answers I got for each one. 1.The price level is measured by using a basket of goods and services and calculating how the nominal cost of buying that basket of goods will change over time(I got true). 3.The rate of inflation is measured as the percentage change between price levels or the values of a price index over time(I got true). 4. As the general price level changes, substitution bias in price indices results in underestimation of the change in the cost of living(I got false).