EC 111 || All Correct.
decreases correct answers inflation ____ the purchasing power of money
inflation correct answers an increase in the average level of prices of goods and services
increases correct answers if the price of iPods rises 10% during a year when the level of average
prices rises 3%, the relative price of iPods compared with other goods ___
risen; fallen correct answers when the price of a good decreases more slowly than an index of
average prices decreases, the good's relative price has ___ while its absolute price has ___
real income correct answers income in constant prices is
increased; increased correct answers if your rent increases from $1000 to $1100 over a period of
one year and your income rises from $6000 to $7000 your nominal income has ___ and your real
income has ___
fall correct answers if deflation is 0.5% per year and your receive a 1% decrease in your salary,
then your real and nominal income ____
lenders correct answers during a period of deflation ___ are better off
money illusion correct answers a friend tells you that his income has risen every year by 5%. At
the sam time, prices, on average, have risen by 5%. Your friend claims he is better off. Your
friend is experiencing ____
lower taxes correct answers all of the following are effects of inflation except:
uncertainty
speculation
bracket creep
lower taxes
bracket creep correct answers the movement of taxpayers into higher tax brackets as nominal
income grow is
CPI; real income correct answers a sudden increase in inflation raises the ___ and reduces ____
____
13.6% correct answers if the CPI increases from 110 to 125 for one year, the rate of inflation for
that year is
a fixed reference correct answers the base period used in computing price index is
item weight correct answers the percentage of total expenditure spent on a specific product is
called
, the producer price index correct answers if you were interested in charting prices of resources
used by producers of energy, which of the following would you use?
GDP deflator correct answers refers to all goods and services produced in GDP
reveals a lower inflation rate than the CPI
reflects both price change and market responses
nominal GDP correct answers value of final output produced, measured in current prices
real GDP correct answers if nominal GDP is constant, then the GDP deflator varies inversely
with
Inflation is less than 3% per year correct answers in the full employment and balanced growth
act of 1978, price stability means that
demand-pull inflation correct answers if consumers attempt to buy more goods than the economy
can produce, the result is
cost-push inflation correct answers when natural disasters disrupt supply chains and push up the
cost of production, this may result in
cost of living adjustments correct answers allow individuals to maintain their purchasing power
during inflation
maintain a stable real interest rate correct answers when inflation suddenly increases, ARMs
real interest rate correct answers is equal to the nominal interest rate minus the anticipated rate of
inflation
is stabilized by arms
is the inflation-adjusted rate of interest
has the least effect correct answers the most desirable inflation rate is the rate that
decreased by $50 correct answers if your nominal income remains constant at $3000 while the
price of an important product in your budget, such as a cell phone service, rises from $50 to
$100, your real income has
not in the labor force correct answers someone 18 years old who is not employed and is not
actively seeking work is considered
in labor force correct answers a part time store clerk who is looking for another job
labor force increase correct answers people must turn from being discouraged workers into
people actively seeking employment
decreases correct answers inflation ____ the purchasing power of money
inflation correct answers an increase in the average level of prices of goods and services
increases correct answers if the price of iPods rises 10% during a year when the level of average
prices rises 3%, the relative price of iPods compared with other goods ___
risen; fallen correct answers when the price of a good decreases more slowly than an index of
average prices decreases, the good's relative price has ___ while its absolute price has ___
real income correct answers income in constant prices is
increased; increased correct answers if your rent increases from $1000 to $1100 over a period of
one year and your income rises from $6000 to $7000 your nominal income has ___ and your real
income has ___
fall correct answers if deflation is 0.5% per year and your receive a 1% decrease in your salary,
then your real and nominal income ____
lenders correct answers during a period of deflation ___ are better off
money illusion correct answers a friend tells you that his income has risen every year by 5%. At
the sam time, prices, on average, have risen by 5%. Your friend claims he is better off. Your
friend is experiencing ____
lower taxes correct answers all of the following are effects of inflation except:
uncertainty
speculation
bracket creep
lower taxes
bracket creep correct answers the movement of taxpayers into higher tax brackets as nominal
income grow is
CPI; real income correct answers a sudden increase in inflation raises the ___ and reduces ____
____
13.6% correct answers if the CPI increases from 110 to 125 for one year, the rate of inflation for
that year is
a fixed reference correct answers the base period used in computing price index is
item weight correct answers the percentage of total expenditure spent on a specific product is
called
, the producer price index correct answers if you were interested in charting prices of resources
used by producers of energy, which of the following would you use?
GDP deflator correct answers refers to all goods and services produced in GDP
reveals a lower inflation rate than the CPI
reflects both price change and market responses
nominal GDP correct answers value of final output produced, measured in current prices
real GDP correct answers if nominal GDP is constant, then the GDP deflator varies inversely
with
Inflation is less than 3% per year correct answers in the full employment and balanced growth
act of 1978, price stability means that
demand-pull inflation correct answers if consumers attempt to buy more goods than the economy
can produce, the result is
cost-push inflation correct answers when natural disasters disrupt supply chains and push up the
cost of production, this may result in
cost of living adjustments correct answers allow individuals to maintain their purchasing power
during inflation
maintain a stable real interest rate correct answers when inflation suddenly increases, ARMs
real interest rate correct answers is equal to the nominal interest rate minus the anticipated rate of
inflation
is stabilized by arms
is the inflation-adjusted rate of interest
has the least effect correct answers the most desirable inflation rate is the rate that
decreased by $50 correct answers if your nominal income remains constant at $3000 while the
price of an important product in your budget, such as a cell phone service, rises from $50 to
$100, your real income has
not in the labor force correct answers someone 18 years old who is not employed and is not
actively seeking work is considered
in labor force correct answers a part time store clerk who is looking for another job
labor force increase correct answers people must turn from being discouraged workers into
people actively seeking employment
