When inflation occurs, producers have to

A) automatically implies that, on average, everyone is better off because prices have fallen. B) is the same as disinflation; it means the rate of inflation has fallen. C) will make you better off if your nominal wages fall more slowly than prices. D) will make you better off if your nominal wages fall more rapidly than prices. E) will make you better off if your real wages fall more rapidly than prices. A) automatically implies that, on average, everyone is better off because prices have fallen. B) is the same as disinflation; it means the rate of inflation has fallen. C) will make you better off if your nominal wages fall more slowly than prices. D) will make you better off if your nominal wages fall more rapidly than prices. E) will make you better off if your real wages fall more rapidly than prices.

Exam 8: The Price Level and Inflation

Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10 percent on average, but the price of tennis rackets remains the same. Which statement is correct?

(Multiple Choice)

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Question 61

If real income increases, then nominal income

(Multiple Choice)

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Question 62

Use the graph shown to discuss, in qualitative terms, the changes in the U.S. inflation rate from 1960 to 2012. Then estimate the inflation rate in 2012.

(Essay)

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Question 63

Assume tuition at Houston Community College cost $588 per semester) in 2004 and $813 in 2012. If the price index was 184 in 2004 and 226 in 2012, then we could say

(Multiple Choice)

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Question 64

Donna Newton made $0.30 per hour in 1946 at a small restaurant in Clearfield, Pennsylvania. If the consumer price index CPI) was 18.3 in 1946 and 202.4 in 2011 and the legal minimum wage in 2011 was $7.25, then

(Multiple Choice)

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Question 65

In Country Z, the prices of goods are measured on an annual basis on the last day of the year. In Country Y, the prices of goods are measured on a weekly basis every Wednesday. Comparing the two countries based on this information,

(Multiple Choice)

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Question 66

What is one reason why a government will deliberately inflate its national money supply?

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Question 67

Donna Newton made $0.30 per hour in 1946 at a small restaurant in Clearfield, Pennsylvania. If the consumer price index CPI) was 18.3 in 1946 and 202.4 in 2011, then Donna's inflation-adjusted wage would be

(Multiple Choice)

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Question 68

Deflation is occurring in a nation; the implications) of this is/are that

(Multiple Choice)

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Question 69

According to the price confusion problem, if the price of a product increases, then

(Multiple Choice)

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Question 70

According to the textbook, the fully completed house that one could buy from the Sears catalog in 1924 would be

(Multiple Choice)

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Question 71

What did Milton Friedman mean by saying that "inflation is always and everywhere a monetary phenomenon"?

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Question 72

If Robert was earning $10,000 and now earns $11,500, then

(Multiple Choice)

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Question 73

Describe menu costs.

(Essay)

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Question 74

If a bank expects inflation to increase in the near future, how will it respond?

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Question 75

If people bought the same market basket of goods as the average consumer again and again the

(Multiple Choice)

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Question 76

Chicken becomes more expensive in 2008 at Wegmans in State College, Pennsylvania. This means

(Multiple Choice)

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Question 77

Typically, the largest percentage category in the consumer price index CPI) is

(Multiple Choice)

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Question 78

Deflation

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Question 79

You are offered two jobs, one in Richmond, Virginia, paying $67,000, and one in San Diego, California, paying $79,000. The price index in Richmond is 104.5; in San Diego it is 132.3. If real wages are the only consideration, then you would

(Multiple Choice)

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Question 80

Showing 61 - 80 of 170

Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10 percent on average, but the price of tennis rackets remains the same. Which statement is correct?

If real income increases, then nominal income

Use the graph shown to discuss, in qualitative terms, the changes in the U.S. inflation rate from 1960 to 2012. Then estimate the inflation rate in 2012.

Assume tuition at Houston Community College cost $588 per semester) in 2004 and $813 in 2012. If the price index was 184 in 2004 and 226 in 2012, then we could say

Donna Newton made $0.30 per hour in 1946 at a small restaurant in Clearfield, Pennsylvania. If the consumer price index CPI) was 18.3 in 1946 and 202.4 in 2011 and the legal minimum wage in 2011 was $7.25, then

In Country Z, the prices of goods are measured on an annual basis on the last day of the year. In Country Y, the prices of goods are measured on a weekly basis every Wednesday. Comparing the two countries based on this information,

What is one reason why a government will deliberately inflate its national money supply?

Donna Newton made $0.30 per hour in 1946 at a small restaurant in Clearfield, Pennsylvania. If the consumer price index CPI) was 18.3 in 1946 and 202.4 in 2011, then Donna's inflation-adjusted wage would be

Deflation is occurring in a nation; the implications) of this is/are that

According to the price confusion problem, if the price of a product increases, then

According to the textbook, the fully completed house that one could buy from the Sears catalog in 1924 would be

What did Milton Friedman mean by saying that "inflation is always and everywhere a monetary phenomenon"?

If Robert was earning $10,000 and now earns $11,500, then

Describe menu costs.

If a bank expects inflation to increase in the near future, how will it respond?

If people bought the same market basket of goods as the average consumer again and again the

Chicken becomes more expensive in 2008 at Wegmans in State College, Pennsylvania. This means

Typically, the largest percentage category in the consumer price index CPI) is

Deflation

You are offered two jobs, one in Richmond, Virginia, paying $67,000, and one in San Diego, California, paying $79,000. The price index in Richmond is 104.5; in San Diego it is 132.3. If real wages are the only consideration, then you would

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand Y

Market Outcomes and Tax Incidence

Price Controls

Introduction to Macroeconomics and Gross Domestic Product

Unemployment

Savings, Interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

Recessions, Expansions, and the Debate Over How to Manage Them

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy

International Trade

International Finance

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