If the price level was 100 in 2009 and 102 in 2010, the inflation rate was
a. 0.2%.
b. 2%.
c. 20%.
d. 102%.
Answer: B
Learn More :
FIN201 Chapter 2
- Which market adjusts the quickest in response to shocks to the economy?
- An increase in taxes (when Ricardian equivalence doesn't hold) causes the real interest rate to ________ and the price level to ________ in general equilibrium.
- Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $35 million. Currency held by the nonbank public is
- Assume that the currency-deposit ratio is 0.2 and the reserve-deposit ratio is 0.1. The Federal Reserve carries out open-market operations, purchasing $1 million worth of bonds from banks. This action will increase the money supply by
- Over the past year, productivity grew 2%, capital grew 1%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.2 and 0.8, respectively, how much did output grow?
- In the Solow model, if f(k) = 2k^0.5, s = 0.1, n = 0.1, and d = 0.05, what is the value of f(k) at equilibrium?
- GDP differs from GNP because
- Which of the following is included in U.S. GDP?
- Which of the following macroeconomic variables is procyclical and coincident with the business cycle?
- In the short run, an increase in export sales would cause output to ________ and the price level to ________.
- There's been a real depreciation of the dollar over the past month. In the long run, you would expect the quantity of
- Currency unions are rare because
- Increases in the debt-GDP ratio are primarily caused by
- Consider an economy that has the following monetary data.
- The average cost of the distortion created by taxes
- In goods market equilibrium in an open economy,
- An economy is considered a small open economy if it
- The number of unemployed divided by the labor force equals
- Suppose your company is in equilibrium, with its capital stock at its desired level. A permanent increase in the depreciation rate now has what effect on your desired capital stock?
- Desired national saving equals
- Money demand is given by M(d)/P = 1000 + 0.2Y - 1000i. Given that P = 200, Y = 2000, and i = 0.10, real money demand is equal to
- An increase in expected inflation is likely to cause
- The amount of output lost when the inflation rate is reduced by one percentage point is called
- If the expected inflation rate is unchanged, a fall in the natural rate of unemployment would
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.