QUESTION 15 Suppose that last year you borrowed $100 at 5 percent interest to pu
ID: 1102402 • Letter: Q
Question
QUESTION 15 Suppose that last year you borrowed $100 at 5 percent interest to purchase a $100 pair of Nike cross-training shoes. This year you repaid the bank with interest. If the inflation rate was 10 percent last year, your purchase of the shoes would O make you an inflation winner as you saved $5 on the shoes. O make you an inflation loser as you paid $5 more than you should have for the shoes O not be affected at all by the inflation rate. O be taxed according to COLA adjustments. O make you an inflation loser because of bracket creep QUESTION 16 The CPI (using a 2000 base year) for 1965 is 26.0. Suppose a household's annual take-home pay in 1965 was $8,320. What would be an equivalent home pay in 2000? O $10,483. O $21,632 () $23.680 $32,000. QUESTION 17 The natural rate of unemployment occurs if there is no: unemployment frictional unemployment structural unemployment cyclical unemployment Cick Save and Submit to save and submit. Chek Save All Ansuers to save all answers Save AllExplanation / Answer
Answer:
15.
Make you an inflation winner as you saved $5 on the shoes.
16.
$32000
The equivalent home pay in 2000= 8,320/26.0
= 320*100
=32000.
17.
Cyclical unemployment.
The natural rate of unemployment occurs if there is no cyclical unemployment.
18.
People in the civilian labor force who are without jobs and actively seeking jobs.
The unemployment rate measures the percentage is people in the civilian labor force who are without jobs and actively seeking jobs.
19.
Cost push inflation.
When OPEC raised the price of oil,it created a cost push inflation.
20.
Supply creates its own demand.
According to say's law,there can not be over production of goods and services because supply creates its own demand.
21.
False.
An increase in consumer wealth shifts the consumption function upward.
22.
The marginal propensity to save =0.25
MPS=1-MPC
=1-0.75
=0.25.
23.
Fall short of
Arecessionary gap is the amount by which aggregate expenditure fall short of the amount required to achieve full employment equilibrium GDP.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.