The term ______________ means unadjusted, gross, or current. The term __________ is used to refer to any statistic which has been adjusted for inflation.  On the expenditure side inflation will make GDP appear ______________ than it really is because it is reflected in market values.  These market values or _____________ are in nominal terms which include infl ation.  An increase in inflation will decrease __________ wages, rents, interest, and profits.

Q: When a nominal value increases it must be true that prices have increased. Select one: True False

A: Nominal value: face value of an asset or security.

Q: Calculate the answers below, rounding to two decimal places. Fill in the missing values.   The CPI…

A: Gross Domestic Product (GDP) is defined as the monetary value of all the final good and services…

Q: which of the following is NOT a problem in using economic statistics? a) using GDP statistics to…

A: Economic statistics refers to the collection, compilation, processing, analysis, and dissemination…

Q: The Consumer Price Index (CPI) is a measure of the average change in price over time from a…

A: Answer: It is given that the price change in cars is parallel to the change in CPI. It means the…

Q: Deflation refers to a situation where price level falls price level rises the rate of inflation…

A: Deflation is one of the components of the business cycle. The business cycle refers to those…

Q: Inflation measures based on GDP deflators take into account a smaller set of goods, compared to the…

A: Better education, healthcare and gain of experience for entrepreneurs can improve quality of…

Q: During recessions, income a) falls and unemployment rises b) and unemployment both fall c) rises and…

A: Recession is a situation in which economic activities of a country falls.

Q: Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the…

A: In an economy, the fall or rise in the production output of commodities and services are described…

Q: Calculate the rate of inflation when the Consumer Price Index went from 200 to 208.  Of the 200…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: The consumer price index is subject to the substitution bias and the quality/new good bias. Are the…

A: Consumer price index uses the value of a basket for a consumer because it considered the market…

Q: Calculate inflation in 2019 and 2020.

A: When we use 2018 as a base year: Real GDP for 2018 = 8*1000 = $8000 Real GDP for 2019 = 8*1500 =…

Q: When a nominal value is unchanged it must be true that prices have remained unchanged. Select one:…

A: Introduction: Nominal Value: It is the value or price of the commodity that does not include…

Q: If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by…

A: Real income is income adjusted for inflation where nominal income does not account for price…

Q: If your nominal income in 2016 was $50,000, and prices doubled between 2016 and 2017, to have the…

A: Nominal income refers the income which is not adjusted to inflation. Real income is income which is…

Q: Mary has been out of the paid workforce in order to raise her children. Now she decides to do paid…

A: A person is defined as a person who is of working age and is willing and able to work but could not…

Q: If the number of people in the labor force is 140 million and 130 million people are employed, then…

A: Employed are those people who are involved in the economic activities. Unemployed are those people…

Q: Question 18   You borrow money for a new car at a rate of 5%; inflation is at 4%. From this…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: real value will increase only when prices increase. Select one: True False If the real value for…

A: The nominal values do not reflect true change in the quantities or real GDP. it is the real GDP…

Q: When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to…

A: Inflation can be defined as a rise in the overall price of all products and services in an economy…

Q: Because there isn't one single measure of inflation, the government and researchers use a variety of…

A: GDP and CPI:In economics, GDP in full form is Gross Domestic Product and measures the value of…