Which of the following results from unexpected increases in the rate of inflation?
A. Creditors are made better off.
B. Redistributions of income and wealth between different groups.
C. Decreased uncertainty.
D. Increased windfall profits to creditors who have lent large amounts of money.
Answer: B
Economics
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According to Okun's Law, the year-to-year change in the rate of unemployment is ________ if the annual growth rate of real GDP is 5%
A) -5% B) 5% C) 2% D) -1%
Economics
Which of the following depends primarily on the growth rate of the money supply?
a. inflation and the natural rate of unemployment b. inflation but not the natural rate of unemployment c. the natural rate of unemployment but not inflation d. neither inflation nor the natural rate of unemployment
Economics