Whether you gain or lose during a period of inflation depends on: a) how the price increases affect government purchases of goods. b) whether the economy is expanding or contracting. c) whether you save or not. d) whether your income rises faster or slower than prices of the things you buy. 2) A real wage that does not keep pace with inflation implies: a) a decrease in purchasing power. b) a decrease in nominal wages. c) a decrease in nominal wages after inflation. d) an increase in the inflation adjusted real wage.

Whether you gain or lose during a period of inflation depends on: a) how the price increases affect government purchases of goods. b) whether the economy is expanding or contracting. c) whether you save or not. d) whether your income rises faster or slower than prices of the things you buy. 2) A real wage that does not keep pace with inflation implies: a) a decrease in purchasing power. b) a decrease in nominal wages. c) a decrease in nominal wages after inflation. d) an increase in the inflation adjusted real wage.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter7: Inflation

Section: Chapter Questions

Problem 20SQ

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50) You put money into an account and earn an after-tax real interest rate of 2.5 percent. If the nominal interest rate on the account is 8 percent and the inflation rate is 2 percent, then what is the tax rate? A) 28.00 percent. B) 36.25 percent. C) 43.75 percent. D) 67.50 percent.
If my nominal wages go up 5% this year and inflation is 2% this year, what happened? a) All of the choices are correct. b) I experience an increase in my both my nominal income and in my real income. c) My nominal wages increased more than the increase in the overall price level. d) My real wages increased by approximately 3%
Which of the following is the positive impact of inflation? A) Inflation causes the real value of saving for a saving person to eroded. B) Inflation makes debtors pay less in real return. C) Fixed-income people have the same income but a high cost of living. D) lender will not have the option to earn interest.
Which statement best describes U.S. inflation between 1982 and 2000? A. It was virtually nonexistent. It was consistently high, often climbing into the double digits. B. It was widely variable, swinging from zero to over 10%. C. It was neither very high nor very low.
Suppose you have $150,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that the inflation rate will be 3% during the year. However, the actual inflation rate for the year is 6%. Calculate the impact of inflation on the bank term deposit you have. ii. Examine the effects of inflation in your city of residence with attention to food and accommodation expenses. iii. The Australian Bureau of Statistics (ABS) reported in May 2016 that the civilian population in Australia over 15 years of age was 19.8 million. Of this population of 19.8 million Australians, 12.5 million were employed and 0.7 million were unemployed. Calculate Australia’s labor force and the number of people in the civilian population who were not in the labor force?
Officially consumer price inflation occurs when there is Inflation is measured by calculating A) one-time increase in the general price level measured using GDP Deflator; a price level. B) a one-time increase in wages; a price index. C) an increase in the price level measured using CPI; the percentage change in a price index from one year to the next. D) a sustained increase in wages and GDP Deflator; the percentage difference between the price level and a price index.
Answer it correctly please.Explain your answer. I will rate accordingly. My last attempt, Do it fast and explain. If borrowers and lenders expect 2% inflation for the next 5 years, and they make lending arrangements based upon those expectations, but the actual inflation rate turns out to be 8%, then A) borrowers gain and lenders lose. B) borrowers gain and lenders gain. C) borrowers lose and lenders lose. D) borrowers lose and lenders gain.
As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates :Select one a. prices for food and fuel grew more rapidly than prices for other .goods b. prices for food and fuel grew less .rapidly than prices for other goods .c. hyperinflation d. the underlying inflation rate was lower than the overall inflation rate
Examine the effects of inflation in attention to food and accommodation expenses.
a government is facing high inflation, then it will take an action as following: I. increase taxes, increase discount rate II. decrease taxes, decrease discount rate III. increase taxes, decrease discount rate IV. decrease taxes, increase discount rate
Inflation and Unemployment Question 4 Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%. Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million. Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed. Calculate Australia’s labor force and the number of people in the civilian population who were not in the labor force? Also, with examples examine the causes of structural unemployment in Australia
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