ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 16, Problem 4.5P
To determine
The methodology by which the policymakers can get the inflation rates lower if it is unexceptionally high and whether the rational expectations provides benefits or not.
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3- A country is said to be experiencing inflation when
A- the goods-market is rising over time
B- prices of all goods and services are rising over time
C- Total output is falling over time
D- prices of all goods and services are falling over time
Question 11 The unemployment rate measures: the number of people unemployed divided by the number of people employed. O unemployed workers as a percentage of the labor force. O unemployed workers as a percentage of the population age over-sixteen. O unemployed workers as a percentage of the population.
Question 12
If the inflation rate turns out to be greater than was is expected to be, the clear winners are
businesses.
lenders.
borrowers.
people on fixed incomes.
Chapter 16 Solutions
ECON MACRO
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- 17 . Critical analysis Q14 Suppose that the Consumer Price Index (CPI) at year end 2019 was 290 and 12 months later at year end 2020, the CPI was 306. What was the inflation rate during 2020? The inflation rate in 2020 will be % . ( 6%, 1.06%, 16%, -6%)arrow_forward11 Frictional unemployment refers to: Unemployment resulting from technological change, competition and government policies. Unemployment occurs because of the mismatch between the characteristics of the labour force and the characteristics of the available jobs. Unemployment occurs due to the ups and downs in the economy resulting from the business cycle. Temporary unemployment occurs when the workers leave their present jobs and look for other jobs.arrow_forward2-5 Kraft and Cadbury When Kraft recently bid $16.7 billion for Cadbury, Cadbury’s market value rose, but Kraft’s market value fell by more. What does this tell you about the value-creating potential of the deal? for one of the surgeries has increased by about 10% each year since 1995, whereas the other has increased by only 2% per year. Which of the surgeries has the lower inflation rate? Why?arrow_forward
- Question 2:___________ inflation is caused by an increase in the cost of production, leading to higher prices for goods and services. This type of inflation can stem from various factors such as increases in labor costs, raw materials prices, or taxes. For example, if the price of oil rises significantly, it can lead to higher transportation and manufacturing costs, which in turn cause an increase in the prices of a wide range of goods and services.A) Demand-pullB) Cost-pushC) Built-inD) Stagflation Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.arrow_forwardHydraulic fracturing (tracking) has the potential to significantly increase the amount of natural gas produced in the United States. If a large percentage of factories and utility companies use natural gas, what will happen to output, the price level, and employment as tracking becomes more widely used?arrow_forward6. The variables in the index of leading indicators are included in the index because Group of answer choices -they are good indicators of the current rate of inflation. -they generally lag behind turns in the business cycle. -of their tendency to lead (or predict) turns in the business cycle. -they are good indicators of the current state of the economy. Which is correct?arrow_forward
- 14. The unemployed are those people who do not have jobs. are not employed but are seeking work are not working are not workingarrow_forward111.) If consumption falls, Keynesians believe unemployment will ________ for everyone, while Austrians believe that unemployment will fall for those employed in ______________. rise, late stages of production rise, early stages of production fall, late stages of production fall, early stages of productionarrow_forward32- If there is inflation and high unemployment in an economy, there is X in this economy.” Find the correct expression that replaces X in the sentence. a) national income B) Deflation NS) stagflation D) Inflation TO) full employmentarrow_forward
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