Ans) the correct option is c) cost push inflation
Ans) the correct option is b) moves the nation's production possibilities curve leftward
Ans) the correct option is d) a negative supply shock.
Ans) the correct option is d) Dividing disposable Income by the Price Index ( in hundredths)
40. Inflation initiated by increases in wages or other resource prices is labeled A) demand-pull inflation....
35. Inflation means that: A. all prices are rising, but at different rates. B. all prices are rising and at the same rate. C.prices on average are rising, although some particular prices may be falling. D. real incomes are rising 36. The annual rate of inflation can be found by subtracting A. the real income from the nominal income. B. last year's price index from this year's price index C. this year's price index from last year's price index and...
Illustrate and briefly explain the beginning of a demand-pull inflation. 3. When answering parts a and b, draw the relevant Phillips curve. Using a short-run Phillips curve, what is the effect on the unemployment rate if the inflation rate unexpectedly rises. Using a long-run Phillips curve, what is the effect on the unemployment rate if the inflation rate rises and people expect the rise. Explain how your answer to part a about the unexpected rise in the inflation rate changes in...
A supply shock is A. an increase in the rate of inflation as a result of expansionary fiscal policy, resulting in a leftward shift of the SRAS curve. B. a sudden increase in the price of an important natural resource, resulting in a leftward shift of the SRAS curve. O C. an increase potential GDP caused by a govemment expenditure multiplier, resulting in a leftward shift of the AD curve. D. an increase in both the inflation and the unemployment...
Section B B22 Expansionary demand management policy measures tend to… [1] raise the real GDP and inflation. [2] increase price level and decrease real output. [3] increase both inflation and the level of unemployment. [4] Increase the production cost, which will decrease total production. B24 Which of the following is NOT the cause of demand-pull inflation? [1] increase in consumption spending. [2] a decrease in interest rates. [3] increase in net exports. [4] rising commodity (e.g. oil) price. B25 Cost-push...
inflation caused by an increase in money supply is called: a demand pull b cost push c administrative inflation d a combination of administrative and speculative inflation
Note: There is only one correct option. 1. To get the equilibrium level of income in the simple Keynesian model [1] we multiply the autonomous aggregate spending by the multiplier 12 we add all the autonomous aggregate spending component and subtract the multiplier [3] we divide the multiplier by aggregate demand [4] we multiply the interest rate by the multiplier 2. An increase in the tax rate in the Keynesian model will 1 shift the aggregate spending curve upwards in...
If the money wage rate and other resource prices do not change when the price level rises by 10 percent, Select one: a. the short-run aggregate supply curve shifts leftward b. the long-run aggregate supply curve shifts rightward c. the long-run aggregate supply curve shifts leftward d. there is movement along the short-run aggregate supply curve Next page G 2019 Hamdan Bin Mohammed Smart University. All rights reserved
Demand-pull inflation can start when O A. unemployment is above the natural rate O B. aggregate supply decreases. O C. people incorrectly forecast inflation. O D. input costs rise. O E. aggregate demand increases. Read the news clip, then answer the following question. Pakistan: Is it Cost-Push Inflation? Pakistan is experiencing inflation With CPI already spiking 11.8 percent for the first ten months of the fiscal year, the average CPI inflation for the same period last year stood at 22.35...
1) Cost-push supply shocks & demand-pull shocks are Keynesian theories of a. welfare benefits. b. inflation episodes. c. labor force participation. d. wartime.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) 21) "Demand-pull inflation" refers to A) any inflation that is originally caused by a rightward shift of the AD curve but is maintained at a constant level by monetary validation. B) only the inflation that results from an expansionary monetary policy. C) any inflation that is originally caused by a rightward shift of the AD curve but is accelerating due to monetary validation. D)...