26) The accumulated loss of output that results from a slowdown in the growth ra

Question

26) The accumulated loss of output that results from a slowdown in the growth rate of GDP per person is called the A) Keynesian gap. B) Okun gap. C) Lucas wedge. D) unemployment wedge. 27) A sustained increase in the price level is defined as A) a recession. B) a growth boom. C) inflation. D) an expansion. Suppose the Consumer Price Index is 143.6. What does that number mean? 28) A) On average, goods cost $143.60 B) On average, goods cost $243.60 C) Prices rose 143.6 percent over the reference base period, on average. D) Prices rose 43.6 percent over the reference base period, on average. hie neriod's price level and Pt-1 to designate last period's

Explanation / Answer

Ans:

26) Option C

Lucas wedge

Lucas wedge measures the value of real GDP lost due to slow down in the growth rate.

27) Option C

Inflation

Inflation is the rise in the general price level of goods and services.The increase in the prices decreases the purchasing power of the money.

28) Option A

On average,goods cost $143.60

consumer price index measures the current prices of a basket of goods and services and it is used for estimation of price change.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.