na particular economy, the price index was 120 in 2012 and 130 in 2013. Which of the following statements is correct? O a. The economy experienced a rising price level between 2012 and 2013. O b. The economy experienced a higher inflation rate between 2012 and 2013 than it had experienced between 2011 and 2012. O c. The inflation rate between 2012 and 2013 was 10 percent. O d. The base year is 2011.

na particular economy, the price index was 120 in 2012 and 130 in 2013. Which of the following statements is correct? O a. The economy experienced a rising price level between 2012 and 2013. O b. The economy experienced a higher inflation rate between 2012 and 2013 than it had experienced between 2011 and 2012. O c. The inflation rate between 2012 and 2013 was 10 percent. O d. The base year is 2011.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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16. What is Inflation? O When there is too much money for items available, the value of the dollar decrease. O When there is not enough money for items available, the value of the dollar increases. When a bank in the United States goes bankrupt. When a company in the United States takes in gives out money to its stockholders.
Suppose that people expect inflation to be 3 percentbut that, in fact, prices rise by 5 percent. Describehow this unexpectedly high inflation would help orhurt the following:a. the governmentb. a homeowner with a fixed-rate mortgagec. a union worker in the second year of a laborcontractd. a college that has invested some of its endowmentin government bonds
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QUESTION 4 Suppose you are told that the price of pears in the second period is actually 0.5. Using this information calculate the rate of inflation using the consumption basket for the first period. The answer is O Zero inflation O 25 percent inflation O 6 percent inflation O Minus 6 percent deflation O None of the above QUESTION 5 gnoring quality change generaly leads to an O Overstatement of inflation * O An understatement of inflation O Has no impact on measured inflation O There is not enough information to answer this question Will lead to deflation
Please select the correct awnsers to following question, please bear in mind that there can be multiple awnser which are correct. Please see attached pictures for questions
Which of the following does inflation affect? OA. Both the level and the distribution of income. OB. The distribution but not the level of income. O C. The level but not the distribution of income. O D. Neither the level nor the distribution of income.
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When inflation falls, people Select one: O a. make less frequent trips to the bank and firms make more frequent price changes O b. make more frequent trips to the bank and firms make less frequent price changes Oc. make less frequent trips to the bank and firms make less frequent price changes O d. make more frequent trips to the bank and firms make more frequent price changes ge en this page
The CPI understates true inflation because it does not take into account consumers' ability to substitute toward goods that become relatively cheaper over time. Select one: O True O False
Sheamous loses his job and decides to sit on the beach rather than look for work during the next few months.Other things the same, the unemployment rate Select one: O a. is unaffected and the labor-force participation rate decreases. O b. increases and the labor-force participation rate is unaffected. O C. and the labor-force participation rate are both unaffected. O d. increases and the labor-force participation rate decreases.
From the data in the table below, what was the rate of inflation for the year ended December 2009? Select one: a. -0.2 percent b. 2.0 percent c. 2.1 percent d. 4.7 percent