write brief notes on the following concepts. i. Demand-pull and cost-push inflation  ii. Consumer Price Index  iii. GDP deflator

Q: After experiencing the new equilibrium inflation rate and its effect on their real wage, workers…

A: Inflation expectations are essentially the rate at which individuals—customers, organizations,…

Q: Which of the following are CORRECT statements regarding inflation and real variables? Select ONLY…

A: The 1st and the 2nd statement in the options given in question are correct answers.

Q: If the nominal interest rate is 10 percent and the inflation rate is 4 percent, then the real…

A: Nominal interest rate is the current rate of interest.Real interest rate is the change in interest…

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: What is Inflation? How it is measured? What Fiscal and Monetary policies are generally adopted to…

A: Answer- Need to find- What is Inflation? How it is measured? What Fiscal and Monetary policies are…

Q: Using diagrammatic illustrations where necessary, write brief notes on the following concepts. i.…

A: Gross domestic product refers to the total amount of all the goods, and services produced in an…

Q: Price level ​(2012 =​ 100) Unemployment rate ​(percentage) 102 7 103 6 105 5 108 4 112 3   Based on…

A: The unemployment rate is the ratio of the number of unemployed people to the labor force and…

Q: Because there isn't one single measure of inflation, the government and researchers use a variety of…

A: The GDP deflator is the measure of price inflation. It is the ratio of the value of goods and…

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: Suppose that people expect inflation to equal 6 percent, but in fact, prices rise by 4 percent.…

A: please find the answer below.

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: Last year the Carter family earned $50 000. This year their income is $52 000. In an economy with an…

A: The income for the family would be the total amount of money which would be earned by the family.…

Q: Is it good for an economy to experience sudden inflation or deflation? Explain with examples

A: Answer:- Lоw-level  inflаtiоn  (2–4  рer  сent)  wоuld  indiсаte  the  eсоnоmy  is  dоing  well,…

Q: Which phase of the business cycle can describe the unemployment rate at its lowest and inflation is…

A: Business cycle refers to ups and downs in the real GDP due to changes in economic activities.

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: Provide examples and explain your answer. If inflation rises unexpectedly by 5% indicate for each of…

A: The Unexpected increase in the Inflation rate affect the following A) A union member with COLA wage…

Q: With respect to the concept of inflation, it is correct to say that ________. options:   A)…

A: Inflation is the rate of increase in average price level of goods and services

Q: Suppose that people expect inflation to equal 6 percent, but in fact, prices rise by 4 percent.…

A:

Q: There is a persistent fear that there will be a high level of deflation. Many economists warn that…

A: Meaning of Deflation and Inflation: Deflation refers to the downfall in the total spending of the…

Q: Because there isn't one single measure of inflation, the government and researchers use a variety of…

A: GDP deflator = Nominal GDPReal GDP ×100 The nominal GDP shows the value of produced goods and…

Q: From the data in the table below, what was the rate of inflation for the year ended December 2009?…

A: The Consumer Price Index refers to the measure of the average change over time in the prices paid by…

Q: Suppose the nominal interest rate is 5 percent, the tax rate on interest income is 30 percent, and…

A: The real interest rate is the rate which we get after deducting the rate of inflation from the…

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: iscuss two methods that can be used to determine the full-employment rate of unemployment and what…

A: The full Employment rate of unemployment means neutral unemployment, which is calculated as Total…

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: Which of these is not a factor that causes demand-pull inflation? a. Private consumption b.…

A: Demand is the sum of the total quantity of commodities that the consumers are willing to purchase at…

Q: Explain (define) the terms given below with appropriate examples. a) Inflation b) Deflation  c)…

A: a) Inflation: Inflation is the rate of rising prices over a given period of time. In general words,…

Q: Whether you gain or lose during a period of inflation depends on: a) how the price increases affect…

A: During the period of inflation, the general price level will continuosly rising.

Q: Last year a movie ticket cost $10. Now a movie ticket cost $12. Which of the following best…

A: Business cycle refers to different phases of an economy which includes expansion and contraction of…

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: Whenever the inflation rate is released by the BLS, they publish both the headline rate and the core…

A: By Headline Inflation we mean the total inflation for the period comprising a basket of commodities.…

Q: Describe an example of demand-pull inflation. And describe an example of cost-push inflation.

A: Inflation is a situation in which general price level rise. As a result of inflation, there is…

Q: If the nominal interest rate is 5 percent and the rate of inflation is 2 percent, then the real…

A: Inflation rate measures the rise in the general price level in an economy. The opposite of inflation…

Q: Q.3.1 In a country with a population of 100 million people there are 20 million children under the…

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

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: describe in details ,a situation,either a government policy situation ,an economic problem,or a…

A: Real values are the nominal values adjusted for the price change or inflation.

Q: Because there isn't one single measure of inflation, the government and researchers use a variety of…

A: The concept that depicts the market value of final goods and services being produced within an…

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

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

Q: Using diagrammatic illustrations where necessary, write brief notes on the following concepts. i.…

A: "You asked for part ii, I am solving part ii only." Consumer Price Index: It is a measure of…

Q: Explain one harm associated with unexpected inflation that is not associated with expected…

A: Expected inflation is the inflation that economic agents expect in the future. Expected inflation…

Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.