Inflation refers to an increase in the
A. price level.
B. rate of inflation.
C. total income.
D. real GDP.
Answer: A
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Discuss some of the fundamental differences between microeconomics and macroeconomics.
What will be an ideal response?
Employees at the university have negotiated a 5 percent increase in wages for the next year, based on their inflation expectations. If inflation is actually 6 percent over the next year, which of the following will occur?
A) Inflation will be 5 percent the following year. B) Real wages for university employees will fall. C) The increase in inflation is expected. D) Unemployment of university employees will rise.
Suppose that you expect during the next year the dollar will appreciate against the pound from 0.5 pound to the dollar to 0.75 pound to the dollar
How much will you expect to make on an investment of $10,000 in British government securities that will mature in one year and pay interest of 8%? A) -59.5% B) -28% C) 8% D) 28%
The EG-ADF test
A) is the similar to the DF-GLS test B) is a test for cointegration C) has as a limitation that it can only test if two variables, but not more than two, are cointegrated D) uses the ADF in the second step of its procedure