When inflation is unexpected, it tends to hurt:
A. people who borrow money from financial institutions.
B. businesses who borrow money from financial institutions.
C. people who save money in financial institutions.
D. people with flexible income.
Answer: C
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Holding other factors constant, the increase in African Americans and Hispanics in the labor force in the United States has
A) decreased structural and frictional unemployment. B) increased cyclical unemployment declined. C) decreased cyclical unemployment increased. D) increased the natural rate of unemployment.
How does an increase in the price level affect the position of the C + I + G + X curve and in turn the equilibrium level of real GDP?
A) The C + I + G + X curve shifts down, thereby reducing the equilibrium level of real GDP. B) The C + I + G + X curve shifts down, thereby increasing the equilibrium level of real GDP. C) The C + I + G + X curve shifts up, thereby reducing the equilibrium level of real GDP. D) The C + I + G + X curve shifts up, thereby increasing the equilibrium level of real GDP.