In Germany, banks are paying a positive interest rate on peoples' savings, as a result O a. Savers are worse off if the inflation rate in Germany is zero O b. Savers are better off if the inflation rate in Germany exceeds the nominal interest rate Oc. Savers are worse off if the deflation rate in Germany is zero d. Savers are better off if the deflation rate in Germany is zero

In Germany, banks are paying a positive interest rate on peoples' savings, as a result O a. Savers are worse off if the inflation rate in Germany is zero O b. Savers are better off if the inflation rate in Germany exceeds the nominal interest rate Oc. Savers are worse off if the deflation rate in Germany is zero d. Savers are better off if the deflation rate in Germany is zero

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Potential GDP is the level of aggregate output Select one: a. that can be sustained in the long run without inflation O b. that can be produced if structural unemployment is zero O c. that can be produced at a zero unemployment rate O d. that can be sustained in the long run, if the capacity utilization is below 100%
Macroeconomic indicators can be categorized as "leading" or "lagging". Which one in the list below is not a lagging indicator? Select one: O O a. The Consumer Price Index b. Labor market statistics c. Commodity prices d. Retail Sales
Q5
Which of the following shifts in aggregate demand and short-run aggregate supply would cause an unambiguous increase in inflation? Select one: O a. A decrease in AD and an increase in SRAS O b. No change in AD and an increase in SRAS O c. An increase in AD and an increase in SRAS d. An increase in AD and a decrease in SRAS O e. A decrease in AD and a decrease in SRAS
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The absence of cyclical unemployment means the economy is at the natural unemployment rate. O True False QUESTION 2 The unemployment rate measures the percentage of the working-age population who can't find a job. O True False
3. Consider the relative PPP. If Foreign country's inflation rate is 5% and E changes by 2%, how much in % is Home's inflation rate?
Based on our understanding of the labor market model, the new labor law in China which increases the protection of workers to be laid off would lead to Select one: a. an increase in the equilibrium real wage O b. an increase in the natural rate of unemployment O c.a reduction in the natural rate of unemployment O d. a reduction in the equilibrium real wage
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When is the economy at the natural rate of unemployment? Select one: O a. All of these choices are correct O b. When everyone in the economy who wants to work is working O c. When the only kinds of unemployment are frictional, structural, and cyclical O d. When everyone in the economy is working Oe. When the only people who want to work and are not working are frictionally unemployed people who are not willing to work unskilled jobs while they search, and structurally unemployed people who are not willing to work unskilled jobs while the get new skills O f. None of these choices are correct