QUESTION 1if the real price of ice cream is rising over time thenO The price of ice cream is rising at the rate of inflationO The price of ice cream is rising faster than the rate of inflation.O The price of ice cream is rising slower than the rate of inflation..O There is no way to know the answer to this question.

Nominal and Real enable us to understand the effect of inflation rate on any variable.

Answered: QUESTION 1 if the real price of ice…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assuming inflation is negative (deflation), then the nominal interest rate a) must always be smaller than the real interest rate. b) could be larger or smaller than the nominal interest rate, depending on the rate of inflation. c) would normally be larger than the nominal interest rate. O d) increases exactly as fast as inflation. O e) must always be larger than the real interest rate.
11 which of the following is a macroeconomic * decision or concent the unemployment rate for the entire economy the price of oil O the unemployment rate for a firm O how many television sets to produce O
18. Mr. Ma owns a pizza shop with AVC = $70 and ATC = $98. It is a competitive market and the market price for pizza is $95. Mr. Ma should A. exit the market in both the short-run and long-run. B. continue his business in both the short-run and long-run. continue his business in the short-run but exit in the long-run if the situation continues. shut down his business in the short-run but continue in the long-run if the situation C. D. continues. Which of the following is(are) correct about how accountants and economists consider costs? Accountants consider only implicit costs Economists consider both explicit and implicit costs 19. I. II. A. I only II only C. Both I and II B. Neither I nor II D. 20. Which of the following statements is(are) correct for a monopoly firm and a competitive firm? Both firms earn economic profit in the long run. I. II. Both firms aim to maximize profit and produce at P = MC. I only П only Both I and II A. B. C. Neither I nor II D.
Darshan needs to borrow money to become a nurse practitioner. Suppose that compensation of nurse practitioners is expected to increase. Assuming nothing else changes, this means that if Darshan borrows now, his cost of borrowing money is expected to due to the following factor: O Decreasing preferences for future consumption. O Rising benefits of becoming a nurse practitioner. Rising compensation of nurse practitioners provokes inflation. Which of the following events could decrease the cost of money? Check all that apply. The Federal Reserve purchases Treasury securities held by banks Inflation increases The federal deficit decreases The Federal Reserve sells Treasury securities to banks decrease increase
Homework (Ch 11) Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 10 2 20 1. Calculators 50 50 54 75 Large coffees 200 200 1 Energy drinks 100 200 4 Textbooks 10 100 1,000 120 150 Total cost 1,470 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by Between 2018 and 2019, the CSPI increased by 15…
Economists find in a business cycle, a peak represents the end of, and a trough represents the end of Select one: a. an expansion; a recession O b. a depression; an expansion O c. a recession; an expansion O d. a trough; a peak
Q6
5
Question 2: Use the above graph to show the following how L* would change A. The price of the final good increases B. The wages increase C. During a period of inflation all prices and wages double
Q 10 please
The the nominal interest rate, the is the quantity of money demanded. O a. more variable; smaller O b. lower; greater O c. lower; smaller O d. None of these because the nominal interest rate does not influence the quantity of money demanded.
3

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