Inflation arises due to: Group of answer choices changes in real output, changes in nominal output, and changes in the unemployment rate. inflation expectations, potential output, and the non-accelerating inflation rate of unemployment (NAIRU). inflation expectations, demand-pull inflation, and cost-push inflation. the negative output gap, the positive output gap, and unexpected inflation.

Inflation arises due to: Group of answer choices changes in real output, changes in nominal output, and changes in the unemployment rate. inflation expectations, potential output, and the non-accelerating inflation rate of unemployment (NAIRU). inflation expectations, demand-pull inflation, and cost-push inflation. the negative output gap, the positive output gap, and unexpected inflation.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 14SQ

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Similar questions

Demand-pull inflation Demand-pull inflation occurs when: A. input costs rise. B. unemployment is above the natural rate. C. people incorrectly forecast inflation. D. aggregate demand increases.
Inflation caused by a cut in income tax is an example of a) expectations-generated inflation b) hyperinflation c) demand-pull inflation d) cost-push inflation
Expectations of inflation are ____________ effective than/as actual inflation in ____________ production costs. a) less; increasing b) less; decreasing c) as; increasing d) as; decreasing e) more; increasing
Inflation expectations refer to the rate at which: Group of answer choices actual inflation exceeds expected inflation. last year's prices rose. current prices are rising. average prices are expected to rise next year.
Assuming prices and output are somewhat flexible, an increase in worthless government spending will cause inflation to __________ in the short run and growth to ___________ in the short run. increase/decrease increase/increase decrease/increase decrease/decrease remain unchanged/remain unchanged
Inflation does not affect all prices equally. This ragged inflation causes relative-price variability, and consumer decisions Question 33 options: are distorted and the ability of markets to efficiently allocate factors of production is impaired. are distorted, but markets are still able to efficiently allocate factors of production. are not distorted, but the ability of markets to efficiently allocate factors of production is impaired. are not distorted and markets are still able to efficiently allocate factors of production.
Time Period nominal interest rate percent Expected Inflation (Percent) Actual Inflation (Percent) Expected Real Interest Rate Actual Real Interest Rate Before increase in MS 10 2 2 Immediately after increase in MS 10 2 5 Suppose the nominal interest rate on savings accounts is 10% per year, and both actual and expected inflation are equal to 2%. The unanticipated change in inflation arbitrarily harms ______________. Now consider the long-run impact of the change in money growth and inflation. According to the Fisher effect, as expectations adjust to the new, higher inflation rate, the nominal interest rate will ______________ to per year.
Demand-pull inflation is often summed up as: Group of answer choices supply-side cost shock inflation excessive demand caused by too much money chasing too few goods the wage-price spiral profit-push inflation
Assuming prices are sticky in the short run, a decrease in useful government spending will cause inflation to __________ in the short run and growth to ___________ in the short run. remain unchanged/decrease increase/increase decrease/increase decrease/decrease remain unchanged/remain unchanged
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
Assuming prices and output are somewhat flexible, an increase in consumer spending will cause inflation to __________ in the short run and growth to ___________ in the short run. increase/decrease increase/increase decrease/increase decrease/decrease uncertain/decrease
Which of the following is wrong? Select one: a. Core inflation is the inflation that consumers feel when they buy their core products. b. Cost-push inflation occurs when factors such as rapid increases in the prices of imported raw materials drive up per-unit production costs at each level of output; higher costs push the price level upward. c. Demand-pull inflation occurs when total spending exceeds how much goods and services are provided at an exiting price level in an economy. d. Inflation is a rising general level of prices and is measured as a percentage change in a price index such as the CPI; deflation is a decline in the general level of prices.