f inflation is higher than anticipated, benefit(s) and if inflation is lower than anticipated, benefit(s). O A. both debtors and creditors; no one O B. no one; both debtors and creditors O C. creditors; debtors O D. debtors; creditors If the interest rate on a loan is 4 percent and the actual inflation rate is 6 percent, the real interest rate is 10 percent. O A. True O B. False

Q: Suppose a workers' union managed to sign a new wage contract with the employer for a 5% nominal wage…

A: Here, it is given that the workers' union signed a contract with employer to have a 5% increase in…

Q: Yvonne takes out a fixed-interest-rate loan and then inflation turns out to be higher than she had…

A: Hi! Thank you for the question but as per the guidelines, We’ll answer the first question since the…

Q: Regarding unemployment, it is correct to say that: O a. Discouraged individuals are those officially…

A: Unemployment occurs when an individual is looking for a job/work and is unable to find one.

Q: Which of the following will NOT cause inflation to increase in home country? O An increase in the…

A: inflation is the pace of increase in costs over a given timeframe. inflation is normally a wide…

Q: Suppose there's an unanticipated increase in the rate of inflation. Which of the following is likely…

A: Inflation refers to an increase in the price of the goods and service in the economy. If there is a…

Q: Assuming the nominal interest rate is positive, ceteris paribus, which of the following statements…

A: The interest rate in economics is the amount of payment that a lender charges on a borrower in order…

Q: Deflation is a phenomenon that describes O A. a decrease in the rate of inflation. O B. a very rapid…

A: Option (C) is correct.

Q: If all wages, salaries, welfare benefits, and other sources of income were indexed to inflation, O…

A: Inflation refers to a persistent increase in prices which reduces the purchasing power of an…

Q: Which of the following statements is CORRECT? O a. The real interest rate is equal to the nominal…

A: Answer is given below

Q: If the nominal interest rate is 10 percent and the inflation rate is 3 percent, then the real…

A: Real interest rate: - The real interest rate is the inflation-adjusted interest rate. Real interest…

Q: Jeanne was working in Belarusian energy sector, but after a year she became unemployed. While she…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: Under which of the following circumstances is inflation most costly to an individual? O The…

A: Inflation refers to the situation where the general price level is increasing.

Q: Inflation means: O a. Specific prices are rising, and relative prices are falling. b. Relative…

A: In case of inflation, absolute price level rises and hence, average price level rises as well. But…

Q: If inflation is higher than anticipated, benefit(s) and if inflation is lower than anticipated,…

A: When actual inflation is higher than expected inflation, borrowers (debtors) benefit and lenders…

Q: The biases in the CPI are Select one: O a. not important since they are so small. O b. not important…

A: A consumer price index is a price index, the price of a weighted typical market crate of consumer…

Q: Which of these statements is true about inflation? O a. It shows changes in the general prices of…

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

Q: What determines a country's long run average Inflation rate? Select one: O a. The rate of inflation…

A: In an economy, the functioning and the importance of economic variables changes in the long-run, as…

Q: A drawback to the "4 percent rule" or "Bengen rule" is that O A. retirees will choose to reduce…

A: Answer - Need to find- Correct option  Given in the question- A drawback to the "4% rule" or "Bengen…

Q: Which of the following correctly shows the steps needed to calculate the inflation rate? O Tally up…

A: The inflation rate is basically an increase in the price level from one period to another. If the…

Q: Why could inflation be persistent in times of output gaps? Because of inflation expectations O a. O…

A: In an economy, output gap refers to the situation when aggregate demand and aggregate supply are not…

Q: Suppose that the price of bananas rises by 30%. This will have the largest impact on which measure…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: 19 and in 2020, consumers in Dexter purchased only books and pens. 2019 2020 prices and quantities…

A: The inflation rate is the percentage increase or decrease in prices during a specified period.

Q: Which of the following is/are true? Real GDP 1. The GDP deflator is given by. Nomínal GDP * 100- II.…

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: What is full employment? Full employment is defined as a situation in which O A. the unemployment…

A: Unemployment is the situation in which the people are willing to work at the prevailing market wage…

Q: The CPI overstates inflation because the average consumer buys O A. the same basket of goods every…

A: The CPI overstates inflation because the typical consumer buys... less of these goods whose relative…

Q: Demand-pull inflation is an inflation that results from an initial Select one: a. decrease in…

A: In an economy, inflation can occur due to various reasons and these reasons ar generally explained…

Q: unexpected inflation is better for whom and why? O If you are a lender, because it reduces the value…

A: Inflation is the increase in average price level of goods and services produced in the economy.

Q: QUESTION 4 Suppose you are told that the price of pears in the second period is actually 0.5. Using…

A: Because 0.5 is the price of pear in the second period and first period price of pear is not…

Q: For this question, assume that the expected rate of inflation is a function of past year's…

A: The Phillips curve shows the trade-off between inflation and unemployment. in keeping with…

Q: Assume that last year's inflation rate is the same as the expect O A. decreases. O B. increases. C.…

A: The correct answer is option C. The phillips curve equation is : π = πe - €(U - U*) where U* =…

Q: The interest rate on Real Return Bonds is a direct measure of Select one: O a. the rate of deflation…

A: Real interest bonds in economics are basically known to be as the government bonds which are…

Q: During periods of volatile inflation, there is O a. certainty about the price of one good relative…

A: Inflation is the situation where there is a continuous rise in prices. The general price level of…

Q: If the nominal interest rate is a constant 15 percent and anticipāted iniflation falls from 10…

A:

Q: The table below pertains to lowan, an economy in which the typical consumer's basket consists of 4…

A: Consumer price index measures the value of market basket of goods and services bought by a consumer.

Q: here has been some recent debate among economists about how inflation is measured. The Con- mer…

A: Inflation is the consistent rise in the price level of goods/services in the economy. CPI is used to…

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

A: Unemployment arises when workers who wish to work are unable to do so, resulting in a reduction in…

Q: In the Okun's Law equation u - Ut-1 = -0.4(g,y - 3%), for the unemployment rate to fall by 2%,…

A: Given: The Okun's law equation is:  ut - ut - 1 = -0.4gy - 3% The unemployment rate falls by = 2% To…

Q: Which of the following does not influence the rate of inflation? O a. The number of people affected…

A: Inflation is the general increase the overall price level in an economy during the period of time.

Q: Suppose that in 2019, the price of food increased to $100 and the price of housing increased to…

A: Now, the price of food F1= $100  the price of housing increased H1 = $200. the cost of the…

Q: John borrowed $3,000 from his bank for one year at 4%. If the rate of inflation turned out to be 6%,…

A: Borrow = 3,000 Nominal Interest rate = 4% Inflation rate = 6%

Q: Marta lends money at a fixed interest rate and then inflation turns out to be higher than she had…

A: We know that the real interest rate is equal to nominal interest rate minus inflation rate.  Real…

Q: Which of the following describes the interest rate on an investment after calculating the impact of…

A: Interest rate is key determinant of investment. The change in the interest rate affects the decision…

Q: Which of the following is incorrect about the outcome of the cost of expected inflation? Select one:…

A: The measure that depicts a general rise in prices of goods and services over a period of time is…

Q: uppose an economy that has been operating at full employment has been experiencing 4 percent annual…

A: Full employment is a condition in which all the people who are willing and able to work are…

Q: A generalization of the fisher effect that can be applied to other variables is the relationship…

A: It is given that,According to the fisher’s effect, the real price growth is equal to the difference…

Q: If inflation is 4 percent per year and you receive a 3 percent raise in income, then your: a. Real…

A: Nominal wages are the wages received by a worker in the form of money. It is also called Money…

Q: The CPI or Consumer Price Index measures O Inflation by monitoring the change in gas prices and food…

A: CPI: CPI or consumer price index can be defined as the weighted mean price of the set of commodities…

Q: People are said to have rational expectations if they Select one: O a. merely guess at the inflation…

A: The theory of rational expectations theory is a widely used concept in macroeconomics. The theory…