Inflation occurs when:
a. The prices of all goods and services rise by the same percent during a given period of time.
b. There is a sustained increase in the average price level.
c. There is an increase in the price level of raw materials.
d. The contraction of the monetary base leads to a decrease in the average price level.
.B
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If the loanable funds market pays 8 percent and you want to earn $1,000 a year of interest income, how much in loanable funds must you supply to the market in order to accomplish this?
a. $8,000 b. $10,000 c. $14,000 d. $12,500 e. $18,000
Tom worked at NASA for 13 years. In the 14th year, his job was automated, resulting in him losing his job. He looked for a new job for 18 months before finding a job in a different line of work that paid less. During his 18-month job search, Tom was considered to be
A. Seasonally unemployed. B. Frictionally unemployed. C. Structurally unemployed. D. Cyclically unemployed.