Start studying Macroeconomics Chapter 13. Learn vocabulary, terms, and more with flashcards, games, and other study tools. For a given inflation rate, if a rise in the stock market makes consumers more willing to spend, then the _____ shifts _____. a positive inflation shock. For a given inflation rate, if concerns about future weakness For a given inflation rate, if bright prospects for the future of the economy cause businesses to increase their spending on new capital, then the _____ shifts _____. aggregate demand curve; right For a given inflation rate, if a rise in the stock market makes consumers more willing to spend, then the ______ shifts _____. c. An increase in the real interest rate is necessarily accompanied by either an increase in the nominal interest rate, an increase in the inflation rate, or both. d. When the inflation rate is positive, the nominal interest rate is necessarily greater than the real interest rate. Tracks the price over time of the basket of goods and services consumed by a typical urban household in a given month; best known measure of the aggregate price level in the U.S. A decrease in the rate of inflation from a high positive level to a lower, but still positive level. Unlike deflation, prices keep rising but at a slower rate than B) average hourly wage rate measured in the dollars of a given reference base year. C) minimum hourly wage rate measured in the dollars of a given reference base year. D) average hourly wage rate measured in current dollars. E) wage rate after inflation has been adjusted out of it. QUESTION 6 A positive inflation rate implies the following except a. could be beneficial because nominal wage is hard to cut b. is necessary if the Fed wants to have room manipulating nominal interest rate c. unexpected inflation causes redistribution of purchasing power O d. increases menu costs QUESTION 7 Assume thata country experiences a reduction in productivity that shifts the labor With positive inflation, the nominal interest rate is higher than the real interest rate. Effectively, the real interest rate is the nominal interest adjusted for the rate of inflation. It allows consumers and investors to make better decisions about their loans and investments.
6. According to the Fisher equation, the real interest rate equals the nominal interest rate minus the: A) natural rate of interest. B) expected rate of inflation. C) ex post rate of inflation. D) ex ante rate of interest. 7. An increase in the central bank's target rate of inflation is represented by a: A) movement up the DAD curve.
A) negative; unemployment rate B) negative; inflation rate C) positive; unemppyloyment rate D) positive; inflation rate 3. The index of leading indicators compiled by the Conference Board includes 10 data series that are used to forecast economic activity about _____ in advance. (example, you borrowed $1000 in 2005 with a 5% fixed interest rate and you paid it back in full in 2007, let's suppose the inflation rate for 2005, 2006 and 2007 has been 15%, you were charged %5 -The revenue from seignorage will eventually decrease as it happens with any tax when the tax rate is high-A high inflation rate will lead to a tax on the holders of money balances.-The government will use "new money" to purchase real goods and services, possibly creating more inflation. 33) The nominal interest rate is always ________ than the real interest rate when inflation is positive. A) greater B) equal C) less D) equal or less 34) If the nominal interest rate is 5 percent and the rate of inflation is 1 percent, then the real interest rate is: A) 5 percent. B) 4 percent. C) 6 percent. D) 5.5 percent. 35) If you want to purchase a new sports car in four years for $75,000
-The revenue from seignorage will eventually decrease as it happens with any tax when the tax rate is high-A high inflation rate will lead to a tax on the holders of money balances.-The government will use "new money" to purchase real goods and services, possibly creating more inflation.
18 Dec 2019 A real interest rate is the rate of interest excluding the effect of expected inflation; it is the rate that is earned on constant purchasing power. The relationship between inflation rates and unemployment rates is inverse. for final goods and services in the economy at a given time and price level. such thing as a free lunch, what would likely be given up to obtain each of the Normal goods, because the income elasticity of demand is positive. d. Are motel expected the inflation rate to be 5 per cent during the year of the loan. What do � It is inversely related to the rate of inflation. Real wage: Nominal wage adjusted for the effects of inflation; Relative deflation: An economy with an inflation rate� who studied the relationship between inflation and unemployment made an our natural rate of unemployment is 6% regardless of what the inflation rate might our original aggregate demand curve and you have a positive demand shock, inflation, well then they might wanna charge more for a certain level of output.
A) negative; unemployment rate B) negative; inflation rate C) positive; unemppyloyment rate D) positive; inflation rate 3. The index of leading indicators compiled by the Conference Board includes 10 data series that are used to forecast economic activity about _____ in advance.
It is inversely related to the rate of inflation. Real wage: Nominal wage adjusted for the effects of inflation; Relative deflation: An economy with an inflation rate� who studied the relationship between inflation and unemployment made an our natural rate of unemployment is 6% regardless of what the inflation rate might our original aggregate demand curve and you have a positive demand shock, inflation, well then they might wanna charge more for a certain level of output. Start studying Macroeconomics Chapter 13. Learn vocabulary, terms, and more with flashcards, games, and other study tools. For a given inflation rate, if a rise in the stock market makes consumers more willing to spend, then the _____ shifts _____. a positive inflation shock. For a given inflation rate, if concerns about future weakness
B) average hourly wage rate measured in the dollars of a given reference base year. C) minimum hourly wage rate measured in the dollars of a given reference base year. D) average hourly wage rate measured in current dollars. E) wage rate after inflation has been adjusted out of it.
6. According to the Fisher equation, the real interest rate equals the nominal interest rate minus the: A) natural rate of interest. B) expected rate of inflation. C) ex post rate of inflation. D) ex ante rate of interest. 7. An increase in the central bank's target rate of inflation is represented by a: A) movement up the DAD curve. A) negative; unemployment rate B) negative; inflation rate C) positive; unemppyloyment rate D) positive; inflation rate 3. The index of leading indicators compiled by the Conference Board includes 10 data series that are used to forecast economic activity about _____ in advance. (example, you borrowed $1000 in 2005 with a 5% fixed interest rate and you paid it back in full in 2007, let's suppose the inflation rate for 2005, 2006 and 2007 has been 15%, you were charged %5 -The revenue from seignorage will eventually decrease as it happens with any tax when the tax rate is high-A high inflation rate will lead to a tax on the holders of money balances.-The government will use "new money" to purchase real goods and services, possibly creating more inflation. 33) The nominal interest rate is always ________ than the real interest rate when inflation is positive. A) greater B) equal C) less D) equal or less 34) If the nominal interest rate is 5 percent and the rate of inflation is 1 percent, then the real interest rate is: A) 5 percent. B) 4 percent. C) 6 percent. D) 5.5 percent. 35) If you want to purchase a new sports car in four years for $75,000