Option B
Explanation: When price rise, a particular amount of dollar can purchase goods worth less than before.
If prices in the economy rise, then O A. the purchasing power of a dollar cannot...
The demand curve is downward-sloping because: Check all that apply. as prices rise, the purchasing power of each dollar earned falls, and consumers are willing and able to buy more of a good. as consumers purchase substitutes, the quantity demanded of the good rises. as consumers purchase substitutes, the quantity demanded of the good falls. the benefit of consuming more of a good rises with each additional unit, so the □ price consumers are willing and able to pay also...
he purchasing power of money A. is set by the Fed in January of each year. B. rises when prices rise. C. is constant. D. rises when prices fall.
because along it, as prices rise, the money wage The long-run aggregate supply curve is rate O A. vertical, rises O B. vertical falls O c. upward sloping, falls O D. upward sloping, stays constant When the price lehel rises and simultaneously there is a decrease in real GDP, O A. the natural unemployment rate increases OB. the Fed has increased the discount rate O c. stagflation occurs O D. there is an expansionary gap.
Suppose that in 2011 all prices in the economy double and that all wages and salaries have also doubled. In 2011 you cannot determine whether you are better off or worse off than you were in 2010, because the purchasing power of your salary cannot be determined. are better off than you were in 2010 as your salary is higher than it was in 2010 and you can now buy more goods and services. are worse off than you were...
Thank you! Which of the following computes the growth in purchasing power? O A. (1 + inflation rate) / (1 + nominal rate) O B. (1 + real rate) / (1 + nominal rate) O c. growth of money / growth of prices O D. growth of money + growth of prices
Purchasing Power Parity does not apply to an economy when it pegs its currency to the US dollar. TRUE/FALSE. Provide brief explanation to justify your answer
Suppose that prices in the United States rise relative to prices in Japan. We expect that A. the dollar will depreciate, and the yen will appreciate. B. both the dollar and the yen will appreciate. C. the dollar will appreciate, and the yen will depreciate. D. both the dollar and the yen will depreciate.
1 of 7 What effect does inflation have on the purchasing power of a dollar? Oa. A dollar can buy much more than it did before. b. A dollar can buy a little more than it did before. c. A dollar can buy the same as it did before. d. A dollar can buy less than it did before.
4. According to purchasing power-parity, if the dollar price of oil is higher in Toronto than oil in Toronto and oil in London to drive _ the price of oil in Toronto. A) buy; sell; up B) buy, sell, down C) sell; buy, up D) sell; buy, down
1. The best definition of inflation is a(n): a temporary increase in prices. b. increase in the price of one important commodity such as food. c. persistent increase in the general level of prices as measured by a price index. d. increase in the purchasing power of the dollar. 2. Inflation: a. reduces the cost-of-living of the typical worker. b. is measured by changes in the cost of a typical market basket of goods between time periods. c. causes the...