MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 10, Problem 12SQ
To determine
The indication of the stagflation.
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Demand-pull inflation arises due to
Part 2
A.
a higher price level.
B.
a decrease in the short-run aggregate supply.
C.
a depreciation of the US$.
D.
a decrease in the aggregate demand.
Part 3
Which of the following would create demand-pull inflation?
Part 4
A.
An increase in household income.
B.
A decrease in wages paid to workers.
C.
Increased international trade barriers.
D.
An increase in the real rate of interest.
11.
Which of the following best represents a combination of inflation, slow economic growth and high unemployment in an economy?
a.Deflation
b.Stagflation
c.Disinflation
d.Disguised inflation
Governments critically analyze the impact of increasing minimum wages. Increasing wages is a risky decision for an economy because this might cause ___________.
a.
Cost push
b.
Hyperinflation
c.
to bring low cost of production
d.
Built in inflation
Chapter 10 Solutions
MACROECONOMICS FOR TODAY
Ch. 10.7 - Prob. 1YTECh. 10.A - Prob. 1SQPCh. 10.A - Prob. 2SQPCh. 10.A - Prob. 3SQPCh. 10.A - Prob. 4SQPCh. 10.A - Prob. 5SQPCh. 10.A - Prob. 6SQPCh. 10.A - Prob. 1SQCh. 10.A - Prob. 2SQCh. 10.A - Prob. 3SQ
Ch. 10.A - Prob. 4SQCh. 10.A - Prob. 5SQCh. 10.A - Prob. 6SQCh. 10.A - Prob. 7SQCh. 10.A - Prob. 8SQCh. 10.A - Prob. 9SQCh. 10.A - Prob. 10SQCh. 10.A - Prob. 11SQCh. 10.A - Prob. 12SQCh. 10.A - Prob. 13SQCh. 10.A - Prob. 14SQCh. 10.A - Prob. 15SQCh. 10.A - Prob. 16SQCh. 10.A - Prob. 17SQCh. 10.A - Prob. 18SQCh. 10.A - Prob. 19SQCh. 10.A - Prob. 20SQCh. 10 - Prob. 1SQPCh. 10 - Prob. 2SQPCh. 10 - Prob. 3SQPCh. 10 - Prob. 4SQPCh. 10 - Prob. 5SQPCh. 10 - Prob. 6SQPCh. 10 - Prob. 7SQPCh. 10 - Prob. 8SQPCh. 10 - Prob. 9SQPCh. 10 - Prob. 10SQPCh. 10 - Prob. 11SQPCh. 10 - Prob. 1SQCh. 10 - Prob. 2SQCh. 10 - Prob. 3SQCh. 10 - Prob. 4SQCh. 10 - Prob. 5SQCh. 10 - Prob. 6SQCh. 10 - Prob. 7SQCh. 10 - Prob. 8SQCh. 10 - Prob. 9SQCh. 10 - Prob. 10SQCh. 10 - Prob. 11SQCh. 10 - Prob. 12SQCh. 10 - Prob. 13SQCh. 10 - Prob. 14SQCh. 10 - Prob. 15SQCh. 10 - Prob. 16SQCh. 10 - Prob. 17SQCh. 10 - Prob. 18SQCh. 10 - Prob. 19SQCh. 10 - Prob. 20SQ
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- In the fall of 2007, most economists felt that the a. inflation rate was above the natural rate. b. unemployment was at the natural rate. c. inflation rate was below the natural rate. d. unemployment rate was below the natural ratearrow_forwardIn theory, inflation not only ______ the value of consumers' money over time, but it also increases the ____ of producers over time. a.Decreases, wages b.Increases, interest rates c.Decreases, unemployment d.Increases, real GDParrow_forwardIn which of the following conditions is the inflation rate likely to rise and the unemployment rate likely to fall? Select one: a. stagflation b. hyperinflation C. recession O d. boomarrow_forward
- In an economy there is a 15.2 % fall in the consumer spending on the same basket of goods and services between the years 2015 and 2016. This means that there is ____. a. Inflation b. Deflation c. No change in price level d. Rise in Price levelarrow_forwardWhich of the following statements about prices and inflation is not correct? A. The inflation rate shows the percentage change in prices across periods of time. B. Prices generally increase at the same rate across most periods of time. C. The price level measures the average prices of goods and services across the economy. D. Inflation represents a general rise in prices over periods of timearrow_forward37. What type of inflation is caused by an increase in the purchasing power of people? a.Cost push b.Chronic c.Built in d.Demand pullarrow_forward
- When stagflation began to appear in the US economy in the late 1960s, economists and policymakers were perplexed because they had never seen __________ and __________ at the same time. a. high inflation rates; high interest rates b. a stagnant economy; high unemployment rates c. high unemployment rates; high growth rates d. high inflation rates; high unemployment ratesarrow_forwardWhich of the following statements about inflation is true? A. Inflation is not a problem because it is just another way for the government to collect revenue—an alternative to the income tax or the sales tax. B. Inflation is a tax on holding money. C. Inflation occurs when real GDP grows more rapidly than the quantity of money. D. Inflation is a tax on spending money.arrow_forwardWhich of the following is a positive statement? a. When the unemployment rate in an economy is 7 percent, the unemployment rate of the urban population is often close to 40 percent. Ob. Unemployment and inflation are equally important problems. C. An inflation rate of 7 percent is too high. d. Unemployment is a less important problem than inflation. e. An unemployment rate of 7 percent or higher is a national disgrace. 000arrow_forward
- In the short run, there is a positive relationship between A. inflation and unemployment B. inflation and real GDP C. the actual price level and aggregate quantity supplied D. the actual price level and unemployment E. the actual price level and consumption spendingarrow_forwardThe years 2002 through 2007 can be described as a period of a. falling output accompanied by decreasing inflation. b. rising output accompanied by increasing inflation. c. falling output accompanied by increasing inflation. d. rising output accompanied by decreasing inflation.arrow_forwardThe following are causes of inflation EXCEPT: a. Money Supply b. Demand c. Rising income d. Underemployment The additional tax on top of the standard tax? a. surtax b. EVAT c. corporate tax d. statutory contributions Tourism industry is trying to get back from the effects of the pandemic. Some businessmen are willing to take risk and invest in business related to tourism and compete with current businesses that are already known in the industry. a. Oligopoly b. Monopoly c. Duopoly d. Perfect Competitionarrow_forward
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