Question 1

Which of the following formulas is correct? Percentage change in

Accepted Answer

A)  price level approximates percentage change in real income minus percentage change in nominal income.
B)  real income approximates percentage change in nominal income minus percentage change in price level.
C)  nominal income approximates percentage change in price level minus percentage change in real income.
D)  real income approximates percentage change in price level minus percentage change in nominal income.E) A) and B)
F) None of the above

Question 2

The duration of a recession measures the depth of decline in real output during the recession.

Accepted Answer

A) True 
 B)False

Question 3

When unanticipated deflation occurs,

Accepted Answer

A)  both creditors and debtors benefit.
B)  both creditors and debtors are hurt.
C)  debtors are hurt, but creditors benefit.
D)  creditors are hurt, but debtors benefit.E) C) and D)
F) A) and B)

Question 4

Most economists agree that the immediate cause of most business cycle variation is

Accepted Answer

A)  an unexpected change in the productivity of workers.
B)  an unexpected change in the level of total spending.
C)  the invention of new products.
D)  the growth and subsequent bursting of financial bubbles.E) A) and D)
F) All of the above

Question 5

Inflation, as measured by percentage changes in the CPI,

Accepted Answer

A)  concerns policymakers more than the level of core inflation.
B)  does not include the most price-flexible goods in the economy.
C)  is generally less volatile than core inflation.
D)  is generally more volatile than core inflation.E) A) and B)
F) A) and C)

Question 6

If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent.

Accepted Answer

A) True 
 B)False

Exam 29: Business Cycles, Unemployment, and Inflation

If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent.

Correct Answer
verified

The duration of a recession measures the depth of decline in real output during the recession.

Correct Answer
verified

Inflation, as measured by percentage changes in the CPI,

Correct Answer
verified

Most economists agree that the immediate cause of most business cycle variation is

Correct Answer
verified

Which of the following formulas is correct? Percentage change in

Correct Answer
verified

When unanticipated deflation occurs,

Correct Answer
verified

Exam 29: Business Cycles, Unemployment, and Inflation

If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent.

Correct AnswerverifiedShow Answer

The duration of a recession measures the depth of decline in real output during the recession.

Correct AnswerverifiedShow Answer

Inflation, as measured by percentage changes in the CPI,

Correct AnswerverifiedShow Answer

Most economists agree that the immediate cause of most business cycle variation is

Correct AnswerverifiedShow Answer

Which of the following formulas is correct? Percentage change in

Correct AnswerverifiedShow Answer

When unanticipated deflation occurs,

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified