Whenever the inflation rate is released by the BLS, they publish both the headline rate and the core rate. what is the difference between them and why do they publish both? Should we be paying more attention to one than the other?

Q: Why do you think the U.S. experience with inflation over the last 50 years has been so much milder…

A: Inflation refers to a continuous increase in the general price level over a specific time period.…

Q: Please explain the methodology behind the Consumer Price Index (CPI) calculation and assess the…

A: Every country on the planet engages in a variety of economic activities, including trade,…

Q: After experiencing the new equilibrium inflation rate and its effect on their real wage, workers…

A: Inflation expectations are essentially the rate at which individuals—customers, organizations,…

Q: What is  the difference between interest rates and inflation rates? Give an example of each.

A: Interest Rate and Inflation rate are different from each other. Inflation is the rise in the general…

Q: Discuss during which phase of the business cycle the inflation is most pronounced

A: During Expansion Phase which phase of the business cycle the inflation is most pronounced.

Q: Explain the two ways to measure inflation

A: Inflation is the decrease in a given currency's buying power over time. Quantitative estimation of…

Q: Define inflation and state it causes in the case of Pakistan. Discuss at least one index through…

A: Inflation is an economic term which refers to rise of prices in goods and services in a particular…

Q: Which policy measure may reduce demand-pull inflation but increase cost-push inflation? Pick a,b,c,…

A: Demand-pull inflation is the growing price pressure that comes with a supply shortage, which…

Q: Is it possible for the central bank to control inflation despite a spike in the CPI? *please explain

A: Central bank is  the apex bank which controls and regulates the entire monetary structure of…

Q: Is it good for an economy to experience sudden inflation or deflation? Explain with examples

A: Answer:- Lоw-level  inflаtiоn  (2–4  рer  сent)  wоuld  indiсаte  the  eсоnоmy  is  dоing  well,…

Q: Name several forms of indexing in the private and the public sector?

A: "Since you have asked two questions, we will answer only first question for you. If you have any…

Q: If the government is concerned about high inflation, it will likely implement some sort of

A: Government can follow fiscal or monetary policy or policy mix to tackle the problem of inflation.

Q: Briefly state two reasons why inflation may be considered to be an economic problem.

A: We can define a rise in the overall level of prices in an economy as Inflation.

Q: What are the costs of expected inflation? Describe briefly

A: Inflation refers to the situation of increasing price level in the economy.

Q: In every election year, politicians sing their own praises of having stabilized prices through the…

A: Persistent rise in prices of goods and services leafs to inflation. When aggregate demand exceeds…

Q: Briefly describe what is meant by the non-accelerating inflation rate of unemployment (NAIRU)

A: Employment is a situation in which job opportunities are available, and people are having jobs.…

Q: Some economists argue that since inflation   a. raises the real value of fixed nominal wages, a…

A: Option (d) is correct.

Q: Suppose individuals expected inflation in a given year to be around 3%, but it actually ended up…

A: ‘Interest rate’ is the cost of borrowing money.  Thus, when there is an increase in money supply in…

Q: Provide examples and explain your answer. If inflation rises unexpectedly by 5% indicate for each of…

A: The Unexpected increase in the Inflation rate affect the following A) A union member with COLA wage…

Q: How do economists use the equation m * v = p * yR to explain the cause of inflation?

A: Inflation is described as an increase in the price of most everyday or common goods and services,…

Q: Which of the following statements about inflation is​ true?   A. Inflation is not a problem because…

A: Presistent rise in price level results in inflation. When the expenditure of government exceeds its…

Q: How does Philip's Curve Theory applies to the relationship of Inflation Rate, Employment Rate and…

A: Inflation and unemployment have a stable and inverse relationship, according to the Phillips curve,…

Q: Economists widely agree that the Consumer Price Index understates the true U.S. inflation rate.…

A: Consumer price index does not include imported goods.

Q: In which situation is the real interest rate lowest? Group of answer choices The nominal interest…

A: Formula:-                 Real Interest rate=1+Nominal interest rate1+Inflation rate-1 a) The…

Q: Identify and briefly describe some statistical index to measure the effects of inflation

A: Inflation alludes to changes over the long haul in the general degree of prices of labor and…

Q: Which of these is not a factor that causes demand-pull inflation? a. Private consumption b.…

A: Demand is the sum of the total quantity of commodities that the consumers are willing to purchase at…

Q: Discuss during which phase of the business cycle the inflation is most pronounced.

A: The relevant phase of the business cycle is discussed below.

Q: hat are the two types of inflation? Describe what each is characterized by and draw them in separate…

A:

Q: What are the costs of inflation? How high inflation affects the income distribution in the economy?

A: There are various costs related to inflation, the uncertainty and volatility may lead to reduction…

Q: Answer the question: What is the importance of understanding the inflation rate surges?

A:

Q: Distinguish between the general inflation rate and the average inflation rate for specific goods?

A: Inflation refers to an economic phenomenon during which a continuous increase in the general prices…

Q: "It is possible to have a situation where the nominal wage is rising and the price level is falling,…

A: The wage rate which is adjustable for inflation is referred to as real wage. The wage rate, which…

Q: Evaluate how each of the following individuals would be affected by unanticipated inflation: (a) A…

A: Unanticipated inflation is the one which is not predicted and hence affects the people more greatly…

Q: Suppose that Lauren is a savvy investor and expects inflation to equal 7 per cent in 2020, but, in…

A: Inflation is defined as a gradual increase in the prices of goods and services in the economy,…

Q: Describe the BLS method of assessing inflation?

A: The BLS or Bureau of Labor statistics measures inflation by computing Consumer Price Index (CPI)…

Q: The real interest rate in Africa is 1.1%.  In 2019, the inflation rate was 1.6%.  The expected…

A: The Fisher equation is a linear approximation of function representing the relationship between the…

Q: Explain the two ways to check inflation whi h is (Inflation rate & Price indices)

A: Inflation: - Inflation is the phenomenon of an increase in the prices of goods and services in an…

Q: The relationship between the inflation rate and the unemplotment rate is it a micro or macro…

A: The inflation rate is the rate at which the price level in economy increases over time. The…

Q: What is the difference between the price level and the rate of inflation?

A: The study of economics deals with the allocation of scarce resources in the most optimal way, when…

Q: Consider an economy in which the nominal interest rate exceeds the real interest rate by 2…

A: The Fisher equation is an economics concept used to link the real interest rate, with the nominal…

Q: Explain walking inflation

A: Definition of inflation : The rate at which prices increase over a specific time period is known as…

Q: Consider an economy where: The real rate of interest The nominal rate of interest 4.11% 7.09%…

A: Real Interest Rate = 1 + Nominal Interest Rate1 + Inflation Rate -1 Real interest rate = Nominal…