Question 1

When a new good enters the market,the CPI

Accepted Answer

A)  accounts for the change in its price immediately. 
B)  fails to account for the impact on living standards from the good's existence. 
C)  never accounts for how the good changes in price. 
D)  accounts for the decline in the price but not for any increases. 
E)  accounts for the good only if sold in populous eastern states. 
A)  accounts for the change in its price immediately. 
B)  fails to account for the impact on living standards from the good's existence. 
C)  never accounts for how the good changes in price. 
D)  accounts for the decline in the price but not for any increases. 
E)  accounts for the good only if sold in populous eastern states.

Question 2

If prices (as measured by the CPI)tripled and nominal wages tripled,what would happen to real wages?

Accepted Answer

A)  They would triple. 
B)  They would remain unchanged. 
C)  They would increase by one-third. 
D)  They would decrease by one-third. 
E)  They would increase by a factor of nine. 
A)  They would triple. 
B)  They would remain unchanged. 
C)  They would increase by one-third. 
D)  They would decrease by one-third. 
E)  They would increase by a factor of nine.

Question 3

Which of the following can happen?

Accepted Answer

A)  Prices are rising and the inflation rate is negative but rising. 
B)  Prices are falling and the inflation rate is positive and falling. 
C)  Prices are falling and the inflation rate is positive and rising. 
D)  Prices are rising and the inflation rate is positive but falling. 
E)  Prices are rising and the inflation rate is negative and falling. 
A)  Prices are rising and the inflation rate is negative but rising. 
B)  Prices are falling and the inflation rate is positive and falling. 
C)  Prices are falling and the inflation rate is positive and rising. 
D)  Prices are rising and the inflation rate is positive but falling. 
E)  Prices are rising and the inflation rate is negative and falling.

Question 4

When the inflation rate ends up being lower than expected,

Accepted Answer

A)  everyone benefits because money is cheaper 
B)  everyone benefits because prices do not increase 
C)  lenders of fixed-rate mortgages generally benefit because they will make higher profits than they had calculated 
D)  borrowers with fixed-rate loans will benefit because their purchasing power will not decline as much 
E)  no one benefits because everyone made financial calculations based on the projected interest rate 
A)  everyone benefits because money is cheaper 
B)  everyone benefits because prices do not increase 
C)  lenders of fixed-rate mortgages generally benefit because they will make higher profits than they had calculated 
D)  borrowers with fixed-rate loans will benefit because their purchasing power will not decline as much 
E)  no one benefits because everyone made financial calculations based on the projected interest rate

When a new good enters the market,the CPI

If prices (as measured by the CPI)tripled and nominal wages tripled,what would happen to real wages?

Which of the following can happen?

When the inflation rate ends up being lower than expected,

What Is Economics

Scarcity,choice,and Economic Systems

Scarcity, choice, and Economic Systems: Part A

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

Perfect Competition: Part A

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

labor Markets: Part A

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

What Macroeconomics Tries to Explain

Production, income, and Employment

The Classical Long-Run Model

Part A: The Classical Model in an Open Economy

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-Run Macro Model

Fiscal Policy

Money,banks,and the Federal Reserve

The Money Market and Monetary Policy

Feedback Effects From GDP to the Money Market

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Appendix-finding Equilibrium GDP Algebraically

Appendix: Capital and Leverage

Filters

Exam 19: The Price Level and Inflation

When a new good enters the market,the CPI

If prices (as measured by the CPI)tripled and nominal wages tripled,what would happen to real wages?

Which of the following can happen?

When the inflation rate ends up being lower than expected,

What Is Economics

Scarcity,choice,and Economic Systems

Scarcity, choice, and Economic Systems: Part A

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

Perfect Competition: Part A

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

labor Markets: Part A

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

What Macroeconomics Tries to Explain

Production, income, and Employment

The Classical Long-Run Model

Part A: The Classical Model in an Open Economy

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-Run Macro Model

Fiscal Policy

Money,banks,and the Federal Reserve

The Money Market and Monetary Policy

Feedback Effects From GDP to the Money Market

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Appendix-finding Equilibrium GDP Algebraically

Appendix: Capital and Leverage

Filters