In economics, what does the term "inflation" refer to? a) The rate at which a currency depreciates b) A decrease in the overall price level c) An increase in the overall price level d) A decrease in the supply of money
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3.In economics, what does the term "inflation" refer to?
a) The rate at which a currency depreciates
b) A decrease in the overall price level
c) An increase in the overall price level
d) A decrease in the supply of money
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Solved in 3 steps
- 20) Some inflation is actually considered good. Explain why that is.19) The term inflation is used to describe a situation in which the overall level of prices and incomes in the economy is increasing. Select one: a. True b. False2. When too much money chases too few goods, the resulting Inflation is called: (a) Deflation (b) Demand-pull Inflation (c) Cost push inflation (a) Stagflation
- 1. What is inflation in the Philippines?2. What are the causes of inflation in the Philippines?5.From 2015-2019, the Austrian accommodation and food services industries have grown in real terms by 4.1 %, the Austrian economy as a whole has grown by 8.7 %. Which of the following statements is true? a) Total production of the accommodation and food services industries in 2019 was larger than in 2015. b) Total production of the accommodation and food services industries has grown faster than the rest of the economy. c) The question can’t be answered because inflation is not corrected for. d) From the given numbers it follows that the sum of tourism receipts has grown during the respective period. e) During that period the contribution of the accommodation and food services industries to the Austrian economy has relatively decreased.2) a. If actual inflation is more than expected inflation, which of the following groups will most certainly benefit? a. Lenders b. Borrowers c. Minorities d. Women e. Men b. Suppose that the consumer price index of a country was 160 at year-end 2004 and 168 at the end of 2005. What was the country’s inflation rate during 2005? a.5 percent b.8 percent c.60 percent d.68 percent c. If the consumer price index (CPI) at the end of year one was 100 and was 108 at the end of year two, the inflation rate during year two was a.zero; the CPI of 100 indicates that prices were stable. b.8 percent. c.5 percent. d.108 percent.
- 7. Suppose that people expect inflation to equal 3%, but in fact, prices rise by 5%. Describe how this unexpectedly high inflation rate would help or hurt the following: A.) the governmentB.) a homeowner with a fixed-rate mortgageC.) a union worker in the second year of a labor contractD.) a college that has invested some of its endowment in government bonds3 Price stability is: The goal of maintaining fair prices for consumers by keeping markets competitive. The goal of maintaining a low and stable inflation rate of 0% per year. The goal of maintaining a high standard of living for a nation's workers by keeping prices low. The goal of maintaining a low and stable price of essential goods such as gas and food. The goal of maintaining a low and stable inflation rate of about 2% per year. Q A Moving to the next question prevents changes to this answer. 4 C % 5 JUL 19 ㅏ stv MacBook Pro 6 & 7 O □ A * 81. Indicate whether each of the following groups is helped or hurt by inflation A. Banks who extend many fixed rate loans B. Students who put savings in a fixed rate savings account C. Mechanics who pay for new tools with a fixed rate loan D. People who sign a four-year lease on an apartment
- 26. IMPACT OF DEVALUATION The inflation rate in Yinland was 14 percent last year. The government of Yinland just devalued its currency (the yin) by 40 percent against the dollar. Even though it produces products similar to those of the United States, Yinland has much trade with the United States and very little trade with other countries. It presently has trade restrictions imposed on all non-U.S. countries. Will the devaluation of the yin increase or reduce inflation in Yinland? Briefly explain.3. Adjusting for inflation Consider golfers who led the PGA in winnings at different points in time. Note that the winnings are nominal figures ( unadjusted for inflation).Use the formula for converting nominal values to convert the original U.S dollar earnings of Nicklaus, Watson, and Woods ('00) to 2009 U.S. dollars. Using those figures,fill in the following table , make sure to round your responses to the nearest U.S. dollar. Year 1973 1980 2000 2009 Golfer Jack Nicklaus Tom Watson Tiger Woods Tiger Woods Nominal Winnings U.S. Dollars ($) 308,362 530,808 9,188,321 10,508,163 U.S. CPI (1983=100) 44.4 82.4 172.2 214.5 Winnings in 2009 U.S. Dollars ($) 10,508,163 List the for golfers in order from lowest inflation-adjusted winnings to highest. Begin by choosing the golfer with the lowest inflation-adjusted winnings from the selection list labeled "4."4. Inflation rates, like most statistics, are imperfect measures. Can you identify some ways that the inflation rate for fruit does not perfectly capture the rising price of fruit?