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Homework answers / question archive / If the economy experiences unanticipated inflation, who benefits? a
If the economy experiences unanticipated inflation, who benefits?
a. savers
b. people on fixed nominal incomes
c. creditors
d. borrowers
COLA's are designed to
a. improve worker productivity.
b. reduce the inflation rate.
c. protect against unanticipated inflation.
d. protect workers against layoffs.
Aggregate supply is
a. the summation of all product supply curves.
b. the horizontal summation of all supply curves for services.
c. the sum of all planned production in the economy.
d. the stock of all goods in the economy.
An increase in aggregate demand is shown by
a. a rightward shift in the aggregate demand curve.
b. a movement up along the aggregate demand curve.
c. a movement down along an aggregate demand curve.
d. a leftward shift in the aggregate demand curve.
What determines the total value of annual U.S. GDP?
a. the Federal Reserve Board
b. the Congressional Budget Office
c. the spending decisions of consumers, firms, and governments
d. Wall Street
The real-balance effect indicates that a higher price level causes
a. the real value of financial assets to increase.
b. the real value of financial assets to decrease.
c. consumers to save more.
d. banks to be more restrictive in their lending practices.
The intersection of aggregate supply and aggregate demand indicates
a. the equilibrium level of real output.
b. the equilibrium level of nominal output.
c. the level of full employment.
d. the optimal rate of investment.
Real GDP can increase as a result of
a. a decrease in aggregate supply.
b. inflation.
c. a decrease in aggregate demand.
d. an increase in aggregate demand.
Households receive money income from selling factor services to businesses.
a. true
b. false
The aggregate demand curve
a. cannot tell us how the total dollar values of spending will ultimately be divided between output and prices.
b. tells us what portion of output is exported.
c. tells us what the employment level will be for any given level of output.
d. tells us what portion of consumption goods are imported.
1)If the economy experiences unanticipated inflation, (d) borrowers benefits because the real vale of their debt falls.
2)COLA's are designed to (c) protect against unanticipated inflation.
3)Aggregate supply is (c) the sum of all planned production in the economy.
4)An increase in aggregate demand is shown by (a.) a rightward shift in the aggregate demand curve.
5) (c.) the spending decisions of consumers, firms, and governments determines the annual U.S. GDP.
6)The real-balance effect indicates that a higher price level causes (b) the real value of financial assets to decrease.
7)The intersection of aggregate supply and aggregate demand indicates (a.) the equilibrium level of real output
8)Real GDP can increase as a result of (d) increase in Aggregate Demand.
9) (a) true
10)The aggregate demand curve (a.) cannot tell us how the total dollar values of spending will ultimately be divided between output and prices.
