Which of the following is FALSE? Multiple Choice in the long run, a central bank can effectively limit inflation in the long run, a central bank cannot effectively stimulate real GDP in the long run, monetary policy has no effect on nominal GDP unless inflation is very high, stin lating an economy contributes more toward the enhancement of economic welfare than controlling inflation a central bank can lower the inflation rate but only by allowing for a loss in real GDP, at least in the short run

Q: How rising commodity prices and wages might lead to cost-push inflation?

A: Inflation is defined as the rise in the general price of all the goods and services in the economy…

Q: If inflation is less than expected, who benefits – borrowers or lenders? Explain your answer.

A: Inflation means when the price of all the goods in the economy is increasing continuously over a…

Q: True or false? Inflation, on average, makes people neither richer nor poorer. Therefore it has no…

A: This question asked us to determine the accuracy of the statement about inflation not impacting…

Q: In the following examples, is inflation creating winners and losers at no net cost to the economy or…

A: Inflation implies a consistent elevation in the general price level of goods and services. Commonly…

Q: 8. Agreement and disagreement among economists Suppose that Brian, an economist from a consulting…

A: The dispute among these economists likely originates from differences in scientific judgment. While…

Q: Which of the following economic changes are consistent with demand -pull inflation ? Check all that…

A: Demand pull inflation or excess demand inflation takes place when aggregate demand is rising while…

Q: Which of the following is a potential benefit of inflation? Higher unemployment Higher prices Less…

A: Inflation refers to the continuous increase in general price level.

Q: By how much did the pace of tuition hikes exceed the 2016 average rate of inflation?

A: Inflation can be defined as a general increase in prices and a fall in the purchasing power of…

Q: should the government emphasize full employment, and should the central banks prioritize…

A: Unemployment refers to people who are employable and actively looking for work but can't find one.…

Q: What could be a real world example that explains the difference between inflation and deflation?

A: Inflation refers to a rise in the general price level in an economy whereas deflation refers to a…

Q: Who are the winners in times of high inflation? In times of recession? In times of depression?

A: Inflation is the measure in the economy at which the average level of prices of a basket of selected…

Q: A microeconomist would study a) how a nation's central bank controls the money supply. b) how a…

A: Microeconomics is the study which shows How individual, firms or households make decisions.

Q: If the government is concerned about high inflation, it will likely implement some sort of

A: Government can follow fiscal or monetary policy or policy mix to tackle the problem of inflation.

Q: What causes the rate of inflation in macroeconomics?

A: Inflation reflects a constant rise in the price level over time or it is a sustained increase in the…

Q: Which of the following describes a situation in which the person is hurt by inflation? Select one:…

A: Inflation is an general increase in the overall price level.

Q: If, over time, wages and salaries on average rise at least as fast as inflation, should people have…

A: Inflation is an economic phenomenon characterized by the sustained and general increase in the…

Q: Which of the following correctly shows the steps needed to calculate the inflation rate?

A: The consumer price index is used in measuring the price level. The consumer price index converts the…

Q: What can be a reason why inflation is not occuring when government spending increases in an economy?

A: inflation refers to the sustained rise in the general price level. It is the general rise in the…

Q: Explain how inflation can be “built into the system.

A: Inflation is nothing but increase in the price level of an economy.

Q: Which of the following groups would most likely be harmed by inflation? Group of answer choices…

A: Inflation is rise of general price level over a period of time.Investment is purchasing or producing…

Q: How the Ukrainian war had an impact on the inflation in Europe (gas and food)? Provide a…

A: A steady rise in the average level of prices for goods and services over an extended period of time…

Q: Explain TWO costs of inflation from an economist’s perspective.

A: Two costs of inflation are :  1. Price system is distorted by Inflation. Inflation is the increase…

Q: large or persistent inflation is almost always caused by

A: Persiste­nt inflation refers to a continuous and long-lasting rise in the overall prices of goods…

Q: In the long run when governments attempt to target unemployment below the natural rate we can expect…

A: Answer - 1. Inflation - When government try to bring unemployment below " natural rate " . It must…

Q: Inflation is always present, to some degree, in economic systems. (a) Define inflation; (b) explain…

A: a) Inflation refers to the falling purchasing power of a currency over a period of time. When the…

Q: The cost of inflation reduction is a large, permanent increase in unemployment. true or false

A: The Phillips curve basically depicts the relationship between inflation and unemployment, and the…

Q: Guy​ Ferrell, a student who lives in the country​ Paragon, observes that analysts are cutting their…

A: 1. The growth forecasts are very important in determining the growth and development of every…

Q: Explain what we can understand by expected inflation, inflation due to an increase in aggregate…

A: Inflation in an economy is referred to be as a rise in the general price level of goods and…

Q: The two main types of inflation are demand-pull and labor slide. True or false?

A: Inflation is described as an increment in the general price level. In other words, prices of many…

Q: Which of the following will most likely cause a change in the natural rate of unemployment? Select…

A: Milton Friedman and Edmund Phelps, two economists, created the idea of the natural rate of…

Q: Which one of the following will help to keep inflation down?       a central bank that supports…

A: Inflation is the continuous increase in the price level in an economy. To control inflation in an…