A consequence of unanticipated inflation in an economy is that: Group of answer choices the rate of economic growth reaches a maximum. the risks of investing in a business increase. the level of productive activities in the economy increases. the allocation of resources in the economy becomes efficient.

Q: Q: Inflation  Answers: - decreases everyone nominal income - decreases everyone real income  -…

A: Inflation: Inflation is an economic concept that is defined as a rise in the general price level of…

Q: Discuss during which phase of the business cycle the inflation is most pronounced

A: During Expansion Phase which phase of the business cycle the inflation is most pronounced.

Q: Determine whether there is a relationship between the unemployment rate and inflation rate.

A: Inflation rate gives the percentage change in price level over a period of time.Unemployment rate is…

Q: Suppose that the natural rate of unemployment is 5.7 percent. If unemployment has for some time been…

A: It is known that Natural unemployment rate is 5.7%. The actual unemployment lies between the range…

Q: Which statement is CORRECT? The Consumer Price Index is considered the best measure of long-term,…

A: In an economy, economic measures use specfiic information to calculate the value of specfic economic…

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: The actual unemployment rate exceeds the natural rate of unemployment. What are policymakers…

A: Unemployment is the situation in the economy in which the laborers are willing to offer their labor…

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: Which type of inflation is usually most pronounced during the expansionary phase of the business…

A: Expansionary phase of business cycle refers to the situation when real GDP is increasing.

Q: Part-time workers are counted as: unemployed and therefore the official unemployment rate may…

A: Part-time workers are often counted as employed, such that when estimating the official unemployment…

Q: According to Australia Bureau of Statistics, in 2020 the population of Australia is about 25.6…

A: Demand pull inflation is the vertical pressure on costs that follows a lack in supply, a condition…

Q: In an economy there is a 15.2 % fall in the consumer spending on the same basket of goods and…

A: The cost of basket represents the total expenditure made by households on specfiic amount of goods…

Q: Cost-push inflation may be caused by:

A: Cost push inflation is one of the major type of inflation.

Q: A low unemployment rate, between 2 and 7%, may be considered full employment. True or false

A: Unemployment: Any individual who is willing and able to work at the existing wage rate but couldn't…

Q: Which of the following is most likely to be true if the rate of inflation rises sharply? a.…

A: Inflation refers to an increase in the general price level in an economy over a period of time. It…

Q: Which of the following is a cause of Cost-Push Inflation? a. Lower prices for raw materials

A: Cost push inflation arises from a decrease in aggregate supply, which is caused by an increase in…

Q: During the Great Recession of 2008, many workers became discouraged and dropped out of the labor…

A: Labor force is a sum of people unemployed and people employed.

Q: Briefly describe what is meant by the non-accelerating inflation rate of unemployment (NAIRU)

A: Employment is a situation in which job opportunities are available, and people are having jobs.…

Q: The Unemployment Rate is defined as which of the following? as the percentage of the adult…

A: Labor force is the sum of employed and unemployed. It includes the people who are currently working…

Q: The effects of inflation are seen in: Question options: a) goods, services, wages and income levels…

A: Asper guidelines we will answer the first question.

Q: Carrie is 21 years old and had just graduated from university. She wants to find a job in the hotel…

A: The measure that depicts individuals who are employable currently and also have been seeking a job…

Q: Which of the following factors could start a demand-pull inflation? # randomize A. an increase in…

A: Demand pull inflation is defined as the rise in price due to increase in demand. In other words,…

Q: Inflation rates, like most statistics, are imperfect measures. Can you identify two ways that the…

A: A currency's purchasing power depreciates with time, known as inflation. A currency's purchasing…

Q: Which among the following is a tool is used by the government is helping the poor class in the time…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Economists widely agree that the Consumer Price Index understates the true U.S. inflation rate.…

A: Consumer price index does not include imported goods.

Q: Which statement is CORRECT? Any person who can work and is of working age is considered part of the…

A: GDP is measured with the aid of using taking the portions of all items and offerings produced,…

Q: Which is the correct order once the AD or SRAS has shifted to start the inflation process? a.…

A: A shift of the AD or SRAS has shifted to start the inflation implies a rightward shift of the…

Q: Identify and briefly describe some statistical index to measure the effects of inflation

A: Inflation alludes to changes over the long haul in the general degree of prices of labor and…

Q: Sally has a credit card balance of ​$1,000. The credit card company charges a nominal interest rate…

A: The interest rate increase would result in an increase in the inflation. The increase in the…

Q: Official unemployment rates may underestimate the true rate of unemployment because the official…

A: GIVEN DATA    The official unemployment rate may underestimate the true rate of unemployment because…

Q: Evaluate how each of the following individuals would be affected by unanticipated inflation: (a) A…

A: Unanticipated inflation is the one which is not predicted and hence affects the people more greatly…

Q: Mark Lai, a student of agricultural science in the developing country Mikatra, notes that the demand…

A: Mark Lai is a student of agriculture science in Mikarta, who notes that the demand for rice has…

Q: The CPI might overstate inflation because consumers may shift consumption to cheaper alternatives.…

A: Consumer price index measures the overall price of market basket of goods and services that is…

Q: The current economic climate of Canada, including information on: • Inflation Rate • Interest Rates…

A: Since you have posted a question with multiple sub-parts, we will solve the first 3 sub-parts for…

Q: A rise in the amount of inflation, given a fixed nominal interest rate will cause:     A.  The…

A: We know that  Nominal interest rate = real interest rate + inflation rate  i = r+π where r is the…

Q: Consider an economy in which the nominal interest rate exceeds the real interest rate by 2…

A: The Fisher equation is an economics concept used to link the real interest rate, with the nominal…

Q: Which of the following is NOT true about consequences of high unanticipated inflation    Select…

A: Unanticipated inflation: It means that there is an increase at a faster pace rather than expected.…

Q: If an economy has experienced unanticipated inflation, which of the following groups has most likely…

A: Unanticipated inflation is a term indicates an increase in price level at a faster pace than…

Q: Which of the following would decrease the unemployment rate? an increase in the minimum wage an…

A: Unemployment refers to the situation in which the people who are willing to work at the prevailing…

Q: Bangladesh is an agricultural country. They produce the majority of agricultural products for their…

A: There are two types of inflation, demand-pull inflation and cost push inflation. In other words, the…