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- 6. Classify each of the following statements as positive ornormative. Explain.a. Society faces a short-run trade-off between inflationand unemployment.b. A reduction in the rate of money growth willreduce the rate of inflation.c. The Federal Reserve should reduce the rate ofmoney growth.d. Society ought to require welfare recipients to lookfor jobs.e. Lower tax rates encourage more work and moresaving.need help with review multiple choice macroeconomic question 24. Newspaper and government sources often cite ‘core’ CPI, a Consumer Price Index that does not include volatile items like gasoline and food. Why is this a misleading measure?(A) It can overstate inflation.(B) It can understate inflation.(C) It misrepresents the volatility of consumer prices. (D) All of the above. 25. Why is the phrase, “Follow the science,” imprecise and misleading?(A) Scientists are mostly a bunch of nerds who do not deadlift.(B) Science is a process of falsification, not a set of dogmas.(C) Scientists have historically stated that smoking is good for health, that Thalido-mide is safe, and that peptic ulcers are caused by spicy foods (instead of H. pylori).(D) It is neither imprecise nor misleading. Always trust scientists.2 The standard definition of a “recession” is Select one: a. two or more consecutive quarters of falling Real GDP. b. the lowest point in a business cycle. c. the declining production phase of a business cycle
- _______ A monthly index that measures changes in pricesthat consumers pay for goods is referred to asthea. prosperity index.b. producer’s price index.c. prosperity price predictor.d. inflation rate index.e. consumer price index.2. Classical School of Thought - What is the classical economics position with respect to (a) wages? (b) prices? (c) interest rates?6. High unemployment is undesirable because it Question 6 options: a) reduces idle resources. b) always increases inflation. c) always increases interest rates. d) results in lower GDP.
- 2. Notice on the Price Changes e chart that average inflation went up by 60.1% since the tum of the century while college tuition and fees soared by 172%. Why has the relative price of college increased so much compared to average inflation?2. When too much money chases too few goods, the resulting Inflation is called: (a) Deflation (b) Demand-pull Inflation (c) Cost push inflation (a) StagflationThe CPI overstates inflation because the average consumer buys A. the same basket of goods every week. B. a generally random assortment of goods and services each week because what is. purchased depends on what the consumer needs. C. less of those goods whose relative price has risen. O D. more of those goods whose relative price has risen. E. lower quality goods if they have a choice. Click to select your answer. DII 80 000 000 :二、 F7 F8 F5 F6 esc F3 F4 F1 F2 2$ & @ # 8. 1 2 3 つ
- 9. Which of the following are stages of the business cycle? Select all that apply. A. trough B. peak C. stagflation D. valley E. supply shockMultiple Choice A) cost-push inflation in the mid-1970s B) Great Recession of 2007-2009 C) demand-puli inflatoon in the late D) 1960 s World War If in the 1940 s15) The primary goal of effective macroeconomic policies is to reduce ________. a. Inflation b. Uncertainty and risk c. Import d. ALL