Question

has to spend s] When the consumer price index falls, the typical family fewer dollars to maintain the same standard of living. economy' s overall price level is rising. which to choose, and this in turn increases the cost of maintaining the 6l Economists use the term inflation to describe a situation in which the 17) When a new good is introduced, consumers have more variety from same level of economic well-being. 18) The real interest rate is the interest rate corrected for inflation. 9) Like physical capital, human capital is a produced factor production. [10) When economists refer to in stocks and bonds and other types of saving. [11] An increase in the demand for they mean the purchasing of loanable funds increases the equilibrium interest rate increases (2) When the government budget deficit rises interest rates rise, and investment falls. s national 13) Alberta buys a paint sprayer and a lift for her and increases the equilibrium level of saving saving is reduced shop. A car macroeconomist would refer to these purchases as [14] Some degree of unemployment is inevitable (1 The natural rate of unemployment is a type in a complex economy. unemployment that does not go away on its own even in the lonp of unenp ong run. i61 Full-time students and homemakers are included in the Bureau df [16 Labor Statistics' "unemployed" category If the Fed buys bonds in the open market, the money supply decreases usj Banks cannot influence the money supply if they hold all deposits in reserve [19) As banks create money, they create wealth. 120) The money supply of Hooba is $10,000 in a 100-percent-reserve banking system. If Hooba decreases the reserve requirement to 10 percent, the money supply could increase by no more than $9 000.

Answer 1

5) Answer: True

Consumer price index fall means that the current price level in the economy is low when compared to the base year , which means people need to spend few dollars for maintaining same Standard of living.

6)Answer: Inflation

Inflation states the increase in price level in the economy which shows how the cost of living of people is giving up as they pay more amount for goods and services.

8) Answer: True

Real interest rate = Nominal interest rate - inflation

So here real interest rate is the interest rate corrected for inflation.

9)Answer: False

Human capital is not a produced factor of production as it is a resource available in the market without but not produced in the market.

10)Answer: True

Investment is the purchase of goods and services for future purposes or saving the money by purchasing different asset classes.