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- If the inflation rate is positive, the price level in an economy is Select one: A. falling slowly. B. falling rapidly. C. constant. D. zero. E. rising.In the fall of 2007, most economists felt that the a. inflation rate was above the natural rate. b. unemployment was at the natural rate. c. inflation rate was below the natural rate. d. unemployment rate was below the natural rateThe economy starts out at full-employment equilibrium. Some events then occur that generate cost-push inflation. Which of the following events might cause cost-push inflation? A. a decrease in exports. B. an increase in the money wage rate or firms raise prices C. an increase in the quantity of money. D. a decrease in government expenditure.
- which of the following is true Select one: a. When the actual rate of unemployment is low than natural rate, the inflation rate decreases b. natural rate of unemployment is that rate of unemployment required to keep the inflation rate constant c. When the actual rate of unemployment is higher than natural rate, the inflation rate increases d. the natural rate can never be the non-accelerating inflation rate of unemploymentInflation targeting a strategy in which the central bank pursues a. a certain numerical objective for output growth b. a certain numerical objective for unemployment c. a certain numerical objective for inflation d. a certain numerical objective for interest ratesIn theory, inflation not only ______ the value of consumers' money over time, but it also increases the ____ of producers over time. a.Decreases, wages b.Increases, interest rates c.Decreases, unemployment d.Increases, real GDP
- In the short run, there is a positive relationship between A. inflation and unemployment B. inflation and real GDP C. the actual price level and aggregate quantity supplied D. the actual price level and unemployment E. the actual price level and consumption spendingAccording to Friedman and Phelps, the unemployment rate is above the natural rate when actual inflation a. low whether its greater than or less than expected. b. is greater than expected inflation. c. equals expected inflation. d. is less than expected inflation.In the long run, a. the natural rate of unemployment depends primarily on the level of aggregate demand. b. inflation depends primarily upon the money supply growth rate. c. there is a tradeoff between the inflation rate and the natural rate of unemployment. d. All of the above are correct.
- A Inflation B Unemployment Refer to the graph shown below. Point C in the graph represents: A. a moderate growth level in the economy. B. C. D. a moderate level of unemployment in the economy. the level Keynesian macroeconomic policy strives for. moderate inflation and all of the above.A falling price level is called as a. disinflation. b. deflation. c. a contraction. d. an inverted inflation.In the fall of 2007, most economists felt that the a. inflation rate was above the natural rate. b. unemployment was at the natural rate. c. inflation rate was below the natural rate. d. unemployment rate was below the natural rate [dont give chatgpt answer i will upvote and other wise downvote]
