Macroeconomics Exam #2

The source of hypernflations is primarily a. lower output growth b. continuing declines in velocity c. increased money supply growth d. continuing increases in money demand

The inflation tax a. is an alternative to income taxes and government borrowing b. taxes most those who hold the most money c. is the revenue created when the government prints money d. all of the above

People can reduce the inflation tax by a. reducing savings b. increasing deductions on their income tax c. reducing cash holdings d. none of the above

Shoeleather costs refer to

The cost of changing price tags and price listings is known as

On income tax forms, people are required to report a. nominal interest earnings b. real interest earnings c. real capital gains d. AOTA

Wealth is redistributed from debtors to creditors when inflation is a. high, but expected b. low, but expected c. unexpectedly high d. unexpectedly low

Wealth is redistributed from creditors to debtors when inflation is a. high, whether is is expected or not b. low, whether it is expected or not c. unexpectedly high d. unexpectedly low

If the economy unexpectedly went from inflation to deflation, a. both debtors and creditors would all have reduced real wealth b. both debtors and creditors would all have increased real wealth c. debtors would gain at the expense of creditors d. creditors would gain at the expense of debtors

high and unexpected inflation has a greater cost a. for those who borrow than those who save b. for those who hold a little money than for those who hold a lot of money c. for those whose wages increase by as much as inflation, than those who are paid a fixed nominal wage d. for savers in high income tax brackets than for savers in low income tax brackets

high and unexpected inflation has a greater cost a. for those who save than those who borrow b. for those who hold a little money than for those who hold a lot of money c. for those whose wages increase by as much as inflation, than those who are paid a fixed nominal wage

between 1880 and 1886 prices that were a. lower than expected transferred wealth from creditors to debtors b. lower than expected transferred wealth from debtors to creditors c. higher than expected transferred wealth from creditors to debtors d. higher than expected transferred wealth from debtors to creditors

cyclical unemployment is closely associated with

which of the following is correct a. some degree of unemployment is inevitable b. other things the same an increase in the number of people who are unemployed is associated with a decrease in real GDP c. cyclical unemployment is inversely related to short-run economic fluctuations in GDP d. AOTA

Data on unemployment is reported... a. weekly b. monthly c. quarterly d. yearly

Unemployment data is collected

The labor force equals the