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- If inflation rises unexpectedly by 5%, indicate for each of the following whether the economic actor is helped, hurt, or unaffected Someone with a large stash of cash in a safe deposit boxnominal wages rise faster than the price level, then real wages have ________ and the purchasing power of income has ________. Select one: a. fallen; fallen b. fallen; risen c. risen; risen d. risen; fallen1. Real GDP decreases during (a).The movement from through to peak (b). The movement from below potential GDP back to potential GDP. (c).A decrease in unemployment (d). The movement from peak to through.
- Stagflation is a combination of: a) increasing unemployment and increasing inflation b) decreasing unemployment and decreasing inflation c) increasing unemployment and decreasing inflation d) decreasing unemployment and increasing inflationDuring the Great Depression, the U.S. economy experienced Select the correct answer below: O severe deflation slight deflation severe inflation slight inflationA rise in the price level means a: a) deflation b) higher value of money c) lower value of money d) lower value of goods
- ggregate demand includes Answer the quantity of goods and services both the government and customers abroad want to buy. the quantity of goods and services neither the government nor customers abroad want to buy. the quantity of goods and service the government wants to buy, but not the quantity of goods and services customers abroad want to buy. the quantity of goods and services customers abroad want to buy, but not the quantity of goods and services the government wants to buy.Question 1 1.a) When inflation occurs, all prices rise together at the same rate. True False 1.b) To calculate the consumer price index, the basket price in the current year is divided by the a.GDP deflator b.inflation rate c.basket price in the base year 1.c) Milton Friedman said that inflation is always and everywhere caused by a.printing money b.minimum wages c.too much government spendingSuppose there is an economy that produces only Houses (H). Fill in the rest of the table below.rGDP ($2018) and rGDP ($2019) denote real GDP using 2018 and 2019 prices, respectively, where GDP stands for nominal GDP. Question: Calculate inflation in 2019 and 2020. (Note: this is two separate calculations)
- answer this multiple choice question: Aggregate Demand is the prime mover of the economy." This statement was made by a: A. Classcal Economist B. Say's Law C. Keynesian Economist D. Adam SmithAn increase in the price of oil will cause Question 56 options: Real wages and unemployment to rise The GDP Deflator and real GDP to fall Real GDP to rise and the GDP Deflator to fall Unemployment and the GDP Deflator to riseCyclical unemployment -------is unemployment caused by a recession. As output (GDP) is increasing, the amount of cyclical unemployment would ▼-----------