5-) Question : Variables expressed in terms ofare called.. Variables.....Please select one or more option:a) physcial units / endogenousb) exogenous units / realc) money / nominald) physical units/ reale) endogenous units / nominal6-) Question: .implies that an increase in .will increaseumw m ma) neutrality of money / inflation / real interest ratesb) inflation / prices / both saving and investmentc) neutrality of money / the money supply / nominal interest ratesd) inflation / prices / real GDPe) neutrality of money / the money supply / real interest rates

Question 5: Variable help in analyzing the economic performance of goods and services in the given…

5-) Question : Variables expressed in terms of . . are called .. Variables Please select one or more option: a) physcial units / endogenous b) exogenous units / real c) money / nominal d) physical units / real e) endogenous units / nominal 6-) Question: implies that an increase in . will increase . ...... .......... a) neutrality of money / inflation / real interest rates b) inflation / prices / both saving and investment c) neutrality of money / the money supply / nominal interest rates d) inflation / prices /real GDP e) neutrality of money / the monex sUrrly./ real interest rates

5-) Question : Variables expressed in terms of . . are called .. Variables Please select one or more option: a) physcial units / endogenous b) exogenous units / real c) money / nominal d) physical units / real e) endogenous units / nominal 6-) Question: implies that an increase in . will increase . ...... .......... a) neutrality of money / inflation / real interest rates b) inflation / prices / both saving and investment c) neutrality of money / the money supply / nominal interest rates d) inflation / prices /real GDP e) neutrality of money / the monex sUrrly./ real interest rates

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Measuring The Cost Of Living

Section: Chapter Questions

Problem 9PA

See similar textbooks

Similar questions

1. The Fisher relationship relates the real interest rate, rt, to the nominal interest rate, it, as well as the current and future price of goods measured in terms of money, Pt and Pt+1. It is given by: Pt Pt+1 1 + rt = (1 + it); (a) Conceptually define how r, and it differ from one another. Given this, provide some intuition for why the Fisher relationship as written above must hold. (b) Define the (gross) expected inflation rate as 1+ +1 relationship approximately implies: Ttit - +1 1+rt = = Pt+1. Use this to show that the Fisher Pt (c) Suppose that, in the medium to long run, the real interest rate satisfies: 1 Yt+1 B Yt 1 Define B = where p > 0. Take logs to derive an approximate relationship between the real interest 1+p rate, p, and the expected growth rate of output. Argue that the real interest rate is increasing in p and increasing in the expected growth rate of output. Provide some intuition (based on competitive equilibrium in an endowment economy) for your answers. (d) If,…
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."
13. Which of the following cannot be used to measure inflation?a) GDP deflationb) Expenditure methodc) Producer price indexd) Consumer price indexWhich of the following equations in correct?a) Nominal interest rate = Real interest rate-Inflationb) Real interest rate = Nominal interest rate + inflationc) Real interest rate = Nominal interest rate x inflationd) Real interest rate = Nominal interest rate-inflation
6. Assume that the inflation rate will be 4% for all future years, and the interest rate is 7%. How many years will it take for the dollar to have the purchasing power that is equal to 65% of itscurrent purchasing power? (select the closest answer)a) about 7 yearsb) about 11 yearsc)about 18 yearsd) about 20 years
YSTEM (ACADEMIC) es of Macroeconomics|| Spring21 There are no costs associated with inflation if the inflation rate is perfectly anticipated. Select one: O True O False ho 40 %23 $24 & 3. 4 6. 7. 8. 6.
Suppose you have $200,000 in a bank term account. You earn 5% interest perannum from this account.You anticipate that the inflation rate will be 4% during the year. However, theactual inflation rate for the year is 6%.Calculate the impact of inflation on the bank term deposit you have andexamine the effects of inflation in your city of residence with attention to foodand accommodation expenses.2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilianpopulation in Australia over 15 years of age was 20.8 million.Of this population of 20.8 million Australians, 13.5 million were employed and0.7 million were unemployed.Calculate Australia’s labor force and the number of people in the civilianpopulation who were not in the labor force? Also,
8 - What does a fall in inflation mean?A) Increasing the level of well-beingB) falling pricesC) an increase in pricesD) a decrease in unemploymentE) Decrease in the rate of increase in prices
1-IThe .. rate is equal to the the. ... rate rate ........... Please select one or more option; www. a) real interest / nominal interest / minus/ inflation b) nominal interest/real interest / minus/ inflation c) real interest / nominal interest / plus / inflation d) nominal interest / real interest/ plus/ inflation e) inflation / nominal interest / minus /real interest 2-) Question: can be stopped with .. policy changes that remove the need for.. Please select one or more option; w w wwm m www a) seigniorage / monetary / borrowing in the open market b) hyperinflations / fiscal / printing large quantities of money c) printing large quantities of money / monetary/ taxes d) hyperinflations / fiscal / seigniorage e) open market operations / new tax /selling gold
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 bonds
43) There are no costs to inflation True O False
Please just do question 4 please 3) Suppose that on January 1, 2019 a bank lends $20,000 to a person. The bank and the individual both agree that the real interest rate charged on the loan should be 10% and the loan is going to be totally paid ($20,000 plus interest), in a one-time payment, on December 31, 2020. Suppose the two parties to this transaction can perfectly foresee what the inflation rate for this period is going to be. Given this information, what is the nominal rate the Bank has to charge on this loan? Assume that the CPI is computed at the beginning of each year. According to US inflation data: The historical average CPI for 2019 is - 255.657 The historical average CPI for 2019 is - 258.811 The inflation rate during the period is: (258.811/255.657 -1) *100 = 1.233% Real Interest Rate = Nominal Interest Rate – Expected Inflation Nominal Interest Rate = Real Interest Rate+ Expected Inflation Nominal Interest Rate = 10% + 1.23% Nominal Interest Rate…
Interest rate (r) % Select one: O MRt O MRW MRX O MRy O MRZ 14 12 10 Inflation % 8 6 4 2 14 12 10 900 8 6 4 2 -MR₂ MRy MR PC MRW MRt VPC B IS Output Output Figure 8 The IS and MR curves At point A in Figure 8, inflation is above its target level, and the real interest rate as shown by the IS curve is 3%. The target level of inflation is achieved at the equilibrium point B. In order to move the economy to the target level the central bank must raise the interest rate to create a fall in aggregate demand. Figure 8 shows a range of possible monetary rule (MR) curves that vary with the central bank inflation preference. Under which monetary rule (MR) curve will the central bank initially hike up the real interest rate to 11% ?