Explain both demand-pull and cost-push inflation

What might be an unintended effect of an inflation rate ceiling? Group of answer choices The real interest rate can become negative if inflation is high enough. The real interest rate will always be very high, and this will discourage borrowing. Businesses will not know the nominal interest rate. It becomes impossible to calculate the real interest rate.

On the way into school you hear the following report on the radio: "inflation for the month of February was 0.4%. Over the year inflation was 2.2%." Which of the following options best explains what these figures mean? Select one: a. Inflation in February was much slower than it was in other months from the past year. b. The prices of household necessities, excluded household luxuries, increased by 2.2%, compared to 12 months ago. c. The prices of the things a typical urban consumer buys, as estimated by the Bureau of Labor Statistics, increased on average 2.2%, compared to 12 months ago. d. The government increased prices by 2.2% over the past year in order to keep pace with production costs.

Explain (define) the terms given below with appropriate examples. a) Inflation b) Deflation  c) Demand-pull inflation d) Cost-push inflation

Explain TWO costs of inflation from an economist’s perspective.

With the aid of graphs, explain: (a) demand-pull inflation (b) cost-push inflation.

Evaluate how each of the following individuals would be affected by unanticipated inflation: (a) A department store clerk, a  heavily indebted farmer A private pensioner The government

Explain the pros and cons of inflation.

Demand-pull inflation can develop when...

Which of the below statements IS NOT CORRECT about the term "inflation" or its effect,  as Charles Wheelan explains the term in this chapter? Group of answer choices   Massive inflation (or, hyperinflation) distorts the economy, as workers rush to spend their cash before it becomes worthless.    The most instructive way to think about inflation is not that prices are going up, but rather that the purchasing power of the dollar is going down.   Inflation redistributes wealth arbitrarily, as unexpected bouts of inflation are good for debtors and bad for lenders.    Inflation favors retired people with fixed incomes and increases the purchasing power of their income.