Answered: Which of these is not a factor that…

Which of these is not a factor that causes demand-pull inflation? a. Private consumption b. Population c. Government spending d. Supply side shocks

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 4.10P

See similar textbooks

Related questions

Q: Consider an economy that starts out in steady state when the central bank decides to make the…

A: Inflation:- Inflation refers to decrease in purchasing powers to currency due to increase in price…

Q: In the short-run you know that firms and households expect inflation of 3.6% next year. There are no…

A: The Phillips bend is a monetary idea created by A. W. Phillips expresses that unemployment and…

Q: Assume the economy is experiencing low and stable inflation, averaging 2% a year. Nadia loans her…

A: Given information Inflation rate=2% per year average Brett took loan from Nadia=$12000 to buy a car…

Q: Which of the following reduces the effectiveness of inflation targeting as a means of reducing…

A: In an economy, inflation targeting refers to the Central Bank policies to make changes in the money…

Q: Distinguish between demand-pull inflation and cost-push inflation. Which of the two types is most…

A: Inflation refers to an abnormal hike in the price level of goods and services in the economy, so if…

Q: Which of the following statements about prices and inflation is not correct? A. The…

A: Inflation: Inflation refers to the situation of general price rise in goods and services in the…

Q: Which of the following statements would you DISAGREE with Explain why ? 1. Higher than anticipated…

A: According to the given statements, three statements are true and one statement is false.

Q: 14. Which of these government actions is designed to lower inflation? E. hiring more government…

A: Inflation is the general rise in the prices of all goods and services which leads to decrease in…

Q: Do people on fixed incomes benefit or loose out from periods ofrelatively high inflation?

A: Inflation is defined as a continuous rise in the price level, which would cause a value of money…

Q: 32. Which of the following best represents an out-of-control inflationary spiral? a. Disguised…

A: Inflation demonstrates a situation where the price level in economy begins increasing over time.…

Q: is a positive statement? of 7 percent is too high. ent rate of 7 percent or higher is a national…

A: Positive and normative analysis are two branches of economics. Positive analysis focuses on “what…

Q: The cost of inflation reduction is a large, permanent increase in unemployment. a.true b.false

A: The Phillips curve represent the relationship between the inflation and the unemployment and there…

Q: Which of these refers to the uncontrollable and sharp increase in the rate of inflation? a. cost…

A: The economies around the world work upon the basis of the forces of the demand for the goods and…

Q: What costs are associated with imperfectly anticipated inflation? Discuss them carefully. Who loses,…

A: The percentage rise in the price level in a given period of time that is expected by participants in…

Q: If the government is concerned about high inflation, it will likely implement some sort of

A: Government can follow fiscal or monetary policy or policy mix to tackle the problem of inflation.

Q: Which statement is true about inflation? A. As inflation rises, unemployment usually stays the same.…

A: The situation that depicts a general rise in the level of prices of goods and services in the…

Q: ‘If the economy has high but stable inflation, the government has much to lose and little to gain by…

A: The inflation is the rise in the aggregate price level. The inflation would result in the price…

Q: If actual inflation exceeds anticipated inflation, who will lose purchasing power and who will gain?…

A: Actual inflation is the rate of inflation measured by the consumer price index and it is unexpected,…

Q: What type of inflation is likely to occur if labor costs increase? a. Built in inflation b.…

A: Macroeconomics analyzes the economy as a whole. It studies aggregate economic concepts such as…

Q: Which is the greater problem: anticipated inflation or unanticipated inflation?

A: Unanticipated inflation is the problem that is greater among the two. because the anticipated…

Q: Real GDP in 2015 is $100b and real GDP in 2016 is $110b. In 2016, nominal GDP grows by 3%. What can…

Q: Explain whether the following statements are true,false, or uncertain.a. “Inflation hurts borrowers…

A: Inflation is the increase in the price level from one period to another.

Q: Provide two examples of people or institutions that are negatively affected by unexpected inflation…

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: Which costs of inflation could the government reduce without reducing inflation? a. arbitrary…

A: Price changes can result from changes in consumer expectations, changes in the price of inputs,…

Q: When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to…

A: Inflation can be defined as a rise in the overall price of all products and services in an economy…

Q: If inflation rises unexpectedly by 5% which of the following economic actors are helped by the…

A: Inflation refers to the general increase in the price level in the economy and increases in the…

Q: I do not think it is an exaggeration to say history is largely a history of inflation, usually…

A: Inflation is the persistent rise in the aggregate level of prices in the economy. Inflation leads to…

Q: Define the term Average Inflation Rate?

A: The inflation rate is the rate of increase in the price level of an economy. For example, if the…

Q: If an economy always has inflation of 10 percent peryear, which of the following costs of inflation…

A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive…

Q: What are the types of inflation? Explain with the help of examples? According to macroeconomics

A: Inflation is defined as the price rise goods and services in the economy. These are of three types…

Q: Ongoing inflation does not automatically reducemost people’s incomes becausea. the tax code is fully…

A: The Expectations of the market participants regarding the future plays a vital role in determining…

Q: Inflation represents the rate of increase of the average price of goods. If inflation decreases from…

A: Inflation refers to the rise in general price level over period of time . Inflation reduces the…

Q: The price-wage spiral is associated with which type of inflation? a. Cost push b. Demand pull c.…

A: The increased wages will result in increased income and increased demand for goods and services. As…

Q: Suppose that Lauren is a savvy investor and expects inflation to equal 7 per cent in 2020, but, in…

A: Inflation is defined as a gradual increase in the prices of goods and services in the economy,…

Q: (a)‌Discuss‌ ‌TWO‌ ‌(2)‌ ‌types‌ ‌of‌ ‌unemployment‌ ‌and‌ ‌provide‌ ‌a‌ ‌relevant‌ ‌example‌ ‌for‌…

A: Unemployment occurs when the people belonging to the labor force of an economy are willing to work…

Q: List, and describe, 4 problems that inflation creates. Look at each of these as a separate response.…

A: The purchase of goods and services by people depends on their purchasing power. The purchasing power…

Q: What type of inflation is caused by an increase in the purchasing power of people? a. Cost push b.…

A: Cost push inflation occurs from a fall in aggregate supply, which raises inflation but reduces…

Q: 2. Demand-pull inflation can occur when… a) There is a shortage of investment and investors bid up…

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

Q: Does inflation impose costs on the economy? Explain the problems with anticipated inflation and…

A: Inflation: It is the continuous increase in the price of the products. Anticipated inflation: When…

Q: Inflation in Africa is expected to pick back up in the near future. How will this inflation affect…

A: Inflation means rise in prices of goods and services.A mild level of inflation is required for a…

Question

Which of these is not a factor that causes demand-pull inflation? a. Private consumption b. Population c. Government spending d. Supply side shocks

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If, over time, wages and salaries on average rise at least as fast as inflation, why do people worry about how inflation affects incomes?
Do neoclassical economists see a value in tolerating a little more inflation if it brings additional economic output? Explain your answer.
Which is the greater problem: anticipated inflation or unanticipated inflation?
Explain with the support of graph(s), demand-pull and cost push inflation
state reasons why voters should care about high inflation and it's logical justification and reasons.
What type of inflation is caused by an increase in the purchasing power of people? a. Cost push b. Demand pull c. Built in d. Chronic
Explain how government gains from unexpected inflation when it borrows?
Explain the different intervention measures that are taken by the government to control inflation? Can inflation be zero, if not what is limit that can be tolerated?
Distinguish between demand-pull inflation and cost-push inflation. Which of the two types is most likely to be associated with a negative GDP gap? Which with a positive GDP gap and when the price is $1500.
Which of these is not a negative effect of inflation? a. It lowers down the value of money b. It rises the level of employment c. It increases the price of goods and services d. It lowers down the purchasing power of people
If actual inflation exceeds anticipated inflation, who will lose purchasing power and who will gain? How does unanticipated inflation harm the economy?
Whether one regards inflation as a “good” thing or a “bad” thing depends very much on one’s economic situation. If you are a borrower, unexpected inflation is a ["", "", "", ""] thing—it reduces the value of money that you must repay. If you are a lender, it is a ["", ""] thing because it reduces the value of future payments you will receive.