If a nation has high and persistent inflation, the most likely explanation is a. the government imposing excessive levels of taxation O b. unions bargaining for excessively high wages Oc. the government creating excessive amounts of money Od. firms using their market power to enforce excessive price hikes

Over the last century, during what periods was the U.S. inflation late highest and lowest?

What has been a typical range of inflation in the U.S. economy in the last decade or so?

How is the poverty rate calculated?

In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?

Does a price ceiling increase the decrease the number of transactions in a market? Why? What about a price floor?

Occupy Wall Street was a national (and later global) organized protest against the greed, bank profits, and financial corruption that led to the 20082009 recession. The group popularized slogans like We me the 99, meaning it represented the majority against the wealth of the top 1. Dues the fact that the protests had little to no effect on legislative changes support or contradict the chapter?

Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to support your answers. The number of people at the most common ages for home-buying increases. People gain confidence that the economy is growing and that their jobs are secure. Banks that have made home loans find that a larger number of people than they expected are not repaying these loans. Because of a threat of a war, people become uncertain about their economic future. The overall level of saving, in the economy diminishes. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.

Under what Circumstances would a minimum wage be a nonbinding price floor? Under what circumstances would a living wage be a binding price floor?

Inflation rates, like most statistics, are imperfect measures. Can you identify some ways that the inflation rate for fruit does not perfectly capture the rising price of fruit?