Which of the following is a positive statement?O a. An inflation rate of 7 percent is too high.b. The unemployment rate of 7 percent or higher is a national disgrace.c. Unemployment and inflation are equally important problems.O d. Unemployment is a less important problem than inflation.e. When the national unemployment rate is 7 percent, the unemployment rate among inner-city youth is often close to 40 percent.

Positive and normative analysis are two branches of economics. Positive analysis focuses on “what…

is a positive statement? of 7 percent is too high. ent rate of 7 percent or higher is a national disgrace. nd inflation are equally important problems. s a less important problem than inflation. al unemployment rate is 7 percent, the unemployment rate among inner-city youth is often cl

is a positive statement? of 7 percent is too high. ent rate of 7 percent or higher is a national disgrace. nd inflation are equally important problems. s a less important problem than inflation. al unemployment rate is 7 percent, the unemployment rate among inner-city youth is often cl

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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↑ Inflation Measure WPI Headline WPI Headline 1 WPI Food 0.34 WPI Core 0.82 CPI Headline 0.32 CPI Food 0.41 CPI Core -0.04 Inflation Measure WPI Headline WPI Food WPI Core CPI Headline CPI Food CPI Core WPI Headline 1 0.55 0.93 0.58" 0.34" 0.77" A: 1997 02-2008 04 WPI Food WPI Core CPI Headline CPI Food CPI Core 1 0.20 0.90 0.93 0.63 1 0.09 0.26 -0.32 B: 2009 01-2019 04 WPI Food WPI Core CPI Headline CPI Food CPI Core 1 0.27 0.91" 0.89 0.74* 1 0.39 0.10 0.67* Revisit Later 1 0.94 0.81 1 0.92* 0.86* 1 0.58 1 0.61* 1 1 Table 2: Correlation matrix of inflation measures (Please ignore the meaning of the * sign) Q. Based on Table 2, we can draw the conclusion that- Select an option & Clear Response The direction of movement between CPI core and WPI headline is not necessarily the same across the years Post 2008, WPI core and WPI headline have moved in opposite directions Prior to 2009, the correlation between WPI core and WPI headline has been very weak Post 2008, CPI core and WPI headline…