QUESTION 17Inflation initiated by increases in wages or other resource prices is labeledO a. demand-pull inflation.O b. demand-push inflation.O c. cost-push inflation.O d. cost-pull inflation.QUESTION 18Suppose nominal GDP was $360 billion in year 1 and $450 billion in year 2. The price index was 120 in year 1 and 125 in year 2. Between year 1 and year 2. real GDPO a. Increased by $60 billion.O b. decreased by $32 billion.O c. increased by $100 billion.O d. increased by $117 billion.QUESTION 19Real GDP accounts for changes in product quality: nominal GDP does not.TrueFalse

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QUESTION 17 Inflation initiated by increases in wages or other resource prices is labeled a. demand-pull inflation. b. demand-push inflation. C. cost-push inflation. d. cost-pull inflation.

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.

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Demand-pull inflation Demand-pull inflation occurs when: A. input costs rise. B. unemployment is above the natural rate. C. people incorrectly forecast inflation. D. aggregate demand increases.
Unanticipated inflation Unanticipated inflation penalises: A. those earning incomes that are taxed in nominal terms B. those who hold cash C. those who lend money at a fixed interest rate D. those earning incomes that are taxed in nominal terms, those who hold cash and those who lend money at a fixed interest rate
Demand-pull inflation arises due to Part 2 A. a higher price level. B. a decrease in the short-run aggregate supply. C. a depreciation of the US$. D. a decrease in the aggregate demand. Part 3 Which of the following would create demand-pull inflation? Part 4 A. An increase in household income. B. A decrease in wages paid to workers. C. Increased international trade barriers. D. An increase in the real rate of interest.
> 325 Question 10 A rise in wages would raise cost of production and hence leads to A) a fall in the price level. B) demand-pull inflation C) no changes in the price level. D cost-push inflation Question 11 1080 100 e di OT n