Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 18, Problem 4RQ
To determine
Cost push inflation and demand pull inflation.
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Students have asked these similar questions
The previous year had an unemployment rate of 14.1%, nominal GDP of $28.9 trillion, and real
GDP of $26.1 trillion. If the unemployment rate changes to 18.6% and overall price levels remain
constant, which choice below could be the current year nominal GDP?
O $39.3 trillion
O $39.2 trillion
$39.1 trillion
O $28.0 trillion
QUESTION 43
If the population of a country is 1,000,000 people, its labor force consists of 500,000, and 40,000 people are unemployed, the
unemployment rate is:
O 50.0 percent.
8.0 percent.
7.4 percent.
4.0 percent.
QUESTION 44
Inflation is defined as:
The level of prices at full-employment.
An increase in the price of expensive items, such as cars.
An increase in the average level of prices.
An increase in relative prices.
QUESTION 45
Over time, U.S. real GDP has increased:
By small, constant increments.
At a constant geometric rate.
At an average rate of 3 percent per year.
At an average rate of 7 percent per year.
Assuming the nominal interest rate is positive, ceteris paribus, which of the following statements is correct?
O a.
If the nominal interest rate is 5 percent and the inflation rate is 2 percent, then the real interest rate is-3 percent.
Ob.
If the nominal interest rate is 4 percent and the inflation rate is 3 percent, then the real interest rate is 7 percent.
O c. When the inflation rate is zero, ceteris paribus, the nominal interest rate will be less than the real interest rate.
O d. When the inflation rate is positive, ceteris paribus, the real interest rate will be less than the nominal interest rate.
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