Exam 32: Inflation

Kim is paid $50,000 per year,and pays an annual income tax of 10 percent.Due to an inflation rate of 10 percent,her pay increases to $55,000,which puts her in a higher tax bracket where she must pay 20 percent.Kim has experienced:

According to the quantity theory of money,increasing the money supply:

Central banks,as they conduct monetary policy,inevitably affect only ___________,with no lasting impact on ___________ in the long run.

Deflation is:

The nominal interest rate is:

A sustained fall in the aggregate price level is called:

A measure of the average price level for GDP is called the:

The natural rate of unemployment:

To measure core inflation,the BLS excludes ______________ from the basket of goods used to calculate the CPI.

Arguably the most damaging economic consequence of inflation is: