Examine the following expression and analyze it: Unforeseen high inflation redistributes society's income, diminishes the ability to make long-term plans, and forces individuals, government, and businesses to carefully assess the purchasing power of their assets.

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?

For the following questions, make use of provided information. Since the peak of the pandemic shutdowns, employment has been increasing. Unemployment peaked around 15% in April 2020, and was down to approximately 4% in February 2022. At the same time, estimated inflation rates have increased from approximately 1.5% in January 2021 to nearly 8% in February 2022. The Federal Open Market Committee (FOMC) is meeting this week (March 15-16). It is widely expected that they will increase interest rates by 0.25% (25 basis points). Explain why the FOMC is expected to increase its target overnight interest rate.

Which one of the following will help to keep inflation down?       a central bank that supports more regulations for commercial banks   a central bank that is independent of Congress and the President   a central bank that is concerned about inequality   a central bank that is headed by a strong and influential chair

Which of the following is true regarding different types of inflation? Cost-push inflation is accompanied by higher unemployment. Cost-push inflation is accompanied by lower unemployment. Demand-pull inflation is accompanied by higher unemployment. Deflation is always accompanied by lower unemployment.

If you are hired by an organization, you would be least hurt by inflation if Group of answer choices The government increases social security retirement payments in anticipation of expected inflation If your employer provides fixed annual increases in salaries and benefits in the employment contract You increase savings in your bank account in anticipation of expected rise in inflation Your employer has a cost-of-living adjustment clause in the employment contract

Felix receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 2.5% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 10%. The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. Given the real interest rate of 2.5% per year, find the nominal interest rate on Felix's bonds, the after-tax nominal interest rate, and the after-tax real interest rate under each inflation scenario.   Compared with lower inflation rates, a higher inflation rate will   _______ (increase/decrease) the after-tax real interest rate when the government taxes nominal interest income. This tends to  ________  (encourage/discourage) saving, thereby ________ (increasing/decreasing) the quantity of investment in the economy and  ________  (increasing/decreasing) the economy's long-run…

High inflation rates are considered detrimental to a country's economy. Please describe and discuss the 2 major reasons that may induce a particular product seller to raise its product price. Please discuss and describe how high inflation levels may affect negatively participants in the 2 major groups of economic decision-makers.

A period during which overall inflation rates are positive but falling is: Multiple Choice deflation. zero price level. disinflation. inflation.

You take out student loans to help pay for your degree at a 5% annual interest rate. Assume the bank expected inflation to average 3% per year. What real interest rate did they expect to earn from your loan? What happens if inflation is actually 5% per year? Who is better off if inflation is higher than expected? What if it is lower than expected? Why?