Inflation Rate (%) + 0 PCLR 5 4 7 Unemployment Rate (%) O move from a to b and eventually to c. O move directly from c to b. PC₂ Refer to the diagram. Assume that the natural rate of unemployment is 5 percent and that the economy is initially operating at point c, where the expected and actual rates of inflation are each 4 percent. If the actual rate of inflation unexpectedly rises from 4 percent to 6 percent, the economy will O remain at a. O move from c to d and eventually to a. PC₁

Inflation Rate (%) + 0 PCLR 5 4 7 Unemployment Rate (%) O move from a to b and eventually to c. O move directly from c to b. PC₂ Refer to the diagram. Assume that the natural rate of unemployment is 5 percent and that the economy is initially operating at point c, where the expected and actual rates of inflation are each 4 percent. If the actual rate of inflation unexpectedly rises from 4 percent to 6 percent, the economy will O remain at a. O move from c to d and eventually to a. PC₁

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

4) If actual inflation is more than expected inflation, which of the following groups will most certainly benefit? а. Lenders b. Borrowers с. Minorities d. Women е. Men Suppose that the consumer price index of a country was 160 at year-end 2004 and 168 at the 5) end of 2005. What was the country's inflation rate during 2005? 5 percent b. а. 8 percent 60 percent d. с. 68 percent 6) If the consumer price index (CPI) at the end of year one was 100 and was 108 at the end of year two, the inflation rate during year two was zero; the CPI of 100 indicates that prices were stable. b. а. 8 percent. 5 percent. d. c. 108 percent.
12
4. As the general price level changes, substitution bias in price indices results in underestimation of the change in the cost of living. 5. A core inflation index is typically calculated by taking the CPI and excluding volatile economic variables. 9. Inflation can help nullify problems created by sticky nominal wages, because with inflation real wages can fall even if nominal wages are constant.
QUESTIONS Which of the following can create demand-pull inflation? O Excessive aggregate spending supply disruptions caused by global pandemics and regional wars O Sharply rising oil prices Higher labor costs Recessions and depressions
It is known that in an economy the standard basket is compound according to this table: Year Food Culture Ma Dwelling P₁ P₂ Q₂ 2019 3 5 3 1 2020 4 10 4 2 4 6 2021 4 10 4 3 Calculate a general price index, and obtain the inflation rate of the economy over time If there were only one nominal wage for all workers in this economy and this wage was 1,000 m.u in 2019, how much has to be the nominal wage in 2020 and 2021 to maintain their purchasing power Q₁ P3 4 4 Q3 3 3
Inflation is best described as: A sustained increase in the demand for goods and services. A sustained increase in output and employment over time. A sustained increase in the supply of currency. O O O A sustained increase in prices over time. A sustained increase in the price of one or two essential goods like the price of gasoline and food. Moving to the next question prevents changes to this answer. JUL 19 tv 10 MacBook Pro A
28 In applying the Phillips Curve, if Congress enacts expansionary policies to reduce unemployment, the cost is Multiple Choice O O an increase in the inflation rate. a decrease in the inflation rate. an increase in productivity. a decrease in productivity.
Which of the following will most likely cause a change in the natural rate of unemployment? 1つ選択してください: O A. changes in monetary policy O B. changes in fiscal policy O C. changes in expected inflation O D. all of these O E. none of these
The following graph shows a short-run Phillips curve for a hypothetical economy. Show the short-run effect of a contractionary monetary policy by dragging the point along the short-run Phillips curve (SRPC) or shifting the curve to the appropriate position. 12 SRPC 6:31 F 4/29/202 INFLATION RATE (Percent) 11 10 9 8 3 H CHIII I SRPC а J H a I
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. Thank you
9
Problems and applications