Econmics question?

15.During which of the following decades was the U.S. inflation rate highest?

a.1920s

b.1930s

c.1950s

d.1970s

e.1980s

16.Since the end of World War II, the U.S. price level has

a.increased eightfold

b.increased by an average of 10 percent each year

c.increased and decreased with equal regularity, leaving the price level almost constant

d.increased by 50 percent

e.doubled

17.A worker would be hurt least by inflation when the

a.worker anticipates inflation and increases savings at the bank

b.worker is protected by a cost-of-living adjustment clause in an employment contract

c.the price level increases but at a decreasing rate

d.worker is protected by fixed annual increases in wages and benefits it an employment contract

e.government increases the level of social security retirement benefits to correct for the effects of unanticipated inflation

18.Since World War II, the Consumer Price Index has increased by an average of

a.1.4% per year

b.2.1% per year

c.6.4% per year

d.5.6% per year

e.3.9% per year

19.Suppose you received a 3 percent increase in your nominal wage. Over the year, inflation ran about 6 percent. Which of the following is true?

a.Your real wage fell.

b.Your nominal wage fell.

c.Both your nominal and real wages decreased.

d.Although your nominal wage fell, your real wage increased.

e.Both nominal and real wages increased.

20.If the inflation rate is 5 percent and you receive a wage increase of 5 percent,

a.your nominal income declines but your real income increases

b.both your nominal income and your real income increase by 5 percent

c.your nominal income increases but your real income declines

d.both your nominal income and your real income decrease by 5 percent

e.your nominal income increases by 5 percent but your real income is unchanged

21.If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent, the expected real interest rate is

a.13 percent

b.-5 percent

c.9 percent

d.-13 percent

e.5 percent

22.During periods when the inflation rate fluctuates widely,

a.all relative prices increase at the same rate, leaving money prices constant

b.all money prices rise at the same rate, causing relative prices to increase

c.economic efficiency increases because decision makers pay closer attention to changes in money prices

Econmics question?yes loans

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e.

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e.

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