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 spending

 When wages are fixed by contract, inflation reduces a.    nominal wages; this likely makes labor markets more flexible. b.    nominal wages; this likely makes labor markets less flexible. c.    real wages; this likely makes labor markets more flexible. d.    real wages; this likely makes labor markets less flexible.  

The aggregate quantity demand of real GDP A. increases if the price level rises. B. decreases if the price level rises. C. does not change with prices. D. All of the choices above are correct.

Demand-pull inflation Demand-pull inflation occurs when:       A.  input costs rise.     B.  unemployment is above the natural rate.     C.  people incorrectly forecast inflation.     D.  aggregate demand increases.

What is likely to be true at the peak of the business cycle? A. Real GDP, unemployment, and inflation are all likely to increase.   B. Real GDP is increasing, unemployment is decreasing, and inflation is increasing.   C. Real GDP, unemployment, and inflation are all likely to decrease.   D. Real GDP is decreasing, unemployment is increasing, and inflation is steady or decreasing.

John Maynard Keynes was the founder of modern macroeconomics. He believed that ... Group of answer choices   a. Persistent unemployment was a temporary phenomenon in the macroeconomy b. Consumer and business expectations play a large part in the macroeconomy c. LRAS was unstable d. Consumers and businesses acted together and would resolve downturns in the economy

The data also indicate that wages tend to be downward rigid.  This means that    a. wage declines are infrequent b. wage increases are infrequent c. wages adjust slowly in both directions d. people are rigid when reporting wages

Unanticipated inflation Unanticipated inflation penalises:       A.  those earning incomes that are taxed in nominal terms     B.  those who hold cash     C.  those who lend money at a fixed interest rate     D.  those earning incomes that are taxed in nominal terms, those who hold cash and those who lend money at a fixed interest rate

#8 As recessions begin, income   a and unemployment both fall. b rises and unemployment falls. c falls and unemployment rises. d and unemployment both rise.

During recessions, output   a. rises, and unemployment falls   b. falls, and unemployment rises   c. and unemployment both rise   d. and unemployment both fall