As the economy enters a boom we can generally expect that
A: inflation will decrease with little change in the unemployment rate
B: unemployment will increase and inflation will decrease
C: nominal GDP will increase but only because of an increase in the price level
D: inflation will increase and the unemployment rate will decrease
E: output will increase with little change in unemployment or inflation
A: inflation will decrease with little change in the unemployment rate
B: unemployment will increase and inflation will decrease
C: nominal GDP will increase but only because of an increase in the price level
D: inflation will increase and the unemployment rate will decrease
E: output will increase with little change in unemployment or inflation
举一反三
- The replacement ratio is A: the reservation wage divided by the wage rate offered on a new job B: the reduction in real GDP caused by a 1 percent reduction in unemployment benefits C: after-tax income while unemployed divided by after-tax income while employed D: the wage rate offered on a new job divided by unemployment benefits E: the increase in the unemployment rate caused by a 1 percent increase in the inflation rate
- What sort of event could lead to a simultaneous decrease in the rates of inflation and unemployment? A: a decrease in money supply B: an increase in money supply C: an adverse supply shock D: a decrease in material prices E: restrictive monetary policy following an adverse supply shock
- Generally, the holder of a government bond that is indexed to the price level knows A: either the interest rate, the principal, or both are adjusted for inflation B: the real interest rate will fluctuate with inflation C: there will be no losses as long as inflation is anticipated, but losses can occur if there is an unanticipated increase in the inflation rate D: all of the above E: none of the above
- When the economy is operating at potential GDP, an unannounced decrease in the rate of growth of the money supply intended to reduce inflation will most likely lead to. lower inflation and: A: a decrease in output in both the short run and the long run. B: no change in output in both the short run and the long run. C: a decrease in output in the short run, and lower inflation but no change in output in the long run.
- What is Inflation? A: Inflation is a decrease in the general level of prices. B: Inflation is an increase in the general level of prices. C: Inflation is a number that that compares prices in one year with prices with some earlier base year. D: Inflation is measured in percentage rates that helps people.