For the definition of inflation, which of the following BEST fits?

Which of the following BEST describes the effect inflation has on purchasing power in the United States over the past several decades?

In 1989-90 inflation in Poland reached over 600%. How did this high inflation affect market adjustments towards equilibrium quantity and price?

Tony’s grandfather is close to retirement from his job of 40 years at the automotive manufacturer. The grandfather has a defined benefit plan for his retirement and is looking forward to having that same amount coming to him for the rest of his life. Tony has just learned about inflation and its redistribution of purchasing power. Tony wants to give his grandfather good advice so that his grandfather’s purchasing power will be able to keep up with inflation. What can Tony advise his grandfather to do to minimize the purchasing power inflation impact over time?

Which scenario could you use as an example of frictional unemployment when explaining it to a friend?

Which of the following goods is likely not to be included in CPI calculations that take 1982-1984 as the base year?

If economists design a way to eliminate the new goods bias in CPI calculations, how is the CPI likely to change as a result?

Identify which of the following answers in real terms, are made less valuable by inflation?

The Campus Collective company, which creates unique apps for colleges, has recently lost three large university clients that made up 40% of its total revenue. This has hit the company hard and management finds it necessary to reduce staff or wages. The economy also appears to be headed toward a recession and gaining more clients will most likely be harder to accomplish. Because it is a smaller company everyone knows each other and knows there are tough choices ahead. Management brings up the idea of an across the board wage reduction so that no one be let go, but some employees don’t believe that a wage cut will be equally applied to all. The employees are also not sure if other people working their same jobs in the economy are getting reduced wages. They start to argue against wage reduction and things get a bit heated. Which of the following theories best illustrate this wage stickiness scenario?

With accelerated inflation In the 1980s middle-class Americans benefited primarily because

After a prolonged period of high inflation the government of Atlantia decides to set a target of 0% inflation going forward. As the new assistant economic minister, you are tasked with critiquing this policy. Which criticism of the 0% inflation target is best supported by the economic literature?

Bill is a construction worker who was laid off because the market for new homes was adversely affected in the recession. Bill’s unemployment experience is referred to as

In the last few decades the electronics manufacturing sector has found it difficult to compete with electronics from foreign competitors. High labor costs is one of the main reasons economist site as the lack of competitiveness for the electronics manufacturing industry. If there was modest inflation how could it possibly help the electronics manufacturing industry compete?

The GDP Deflator is

Why are certain policy decisions (like those undertaken by the Federal Reserve) best informed by using the core inflation index as opposed to the CPI?

What does the unemployment rate measure?