Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 1, Problem 3RQ
To determine
The concepts of inflation and deflation and the behavior of price levels of consumer goods in America prior to and post-World War II.
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Which of the following economic changes are consistent with demand-pull inflation? Check all that apply.
Falling unemployment
Excessive issuance of money by the central bank
An increase in the price level
In every election year, politicians sing their own praises of having stabilized prices through the attainment of single digit inflation. As a macroeconomist, explain three policy measures that could be used to fight inflations
Describe five economic effects of a continuous,
moderate inflation.
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- c) Define inflation and its measurement. What is the current environment in the USAarrow_forwardIdentify and briefly describe some statistical index to measure the effects of inflation.arrow_forwardWhich of the following economic changes are consistent with demand -pull inflation ? Check all that apply. Falling unemployment Falling economic output Excessive issuance of money by the central bankarrow_forward
- What are the various effects of high inflationarrow_forwardWhich type of inflation is usually most pronounced during the expansionary phase of the business cyclearrow_forwardWhich of the following is a potential benefit of inflation? Higher unemployment Higher prices Less government revenue More business profitsarrow_forward
- Which of the following correctly shows the steps needed to calculate the inflation rate?arrow_forwardDescribe the inflation rate trend in the inflation rate graph provided.arrow_forwardWhich of the following groups would most likely be harmed by inflation? Group of answer choices spenders workers retirees none of the above Older people often reminisce about the “good old days” when prices were much lower. This is misplaced nostalgia primarily because in the “good old days” Group of answer choices prices were not really that low wages were much lower also When interest rates fall, investment expenditures by businesses Group of answer choices decrease increasearrow_forward
- Inflation is defined as a sustained increase in the price level. is this true or false?arrow_forwardExplain (define) the terms given below with appropriate examples. a) Inflation b) Deflation c) Demand-pull inflation d) Cost-push inflationarrow_forwardExplain three implications of increasing inflation.arrow_forward
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