# Unanticipated inflation does all of the following

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Chapter 18 / Exercise 20
Exploring Economics
Sexton Expert Verified
17. Unanticipated inflation does all of the following EXCEPT: reduce the value of money. cause disinflation. cause uncertainty about the future. reduce the value of debt.
18. The text discusses the relationship between economic growth and changes in the unemployment rate during the short run. Using the infinite line drawing tool, draw a curve to illustrate the relationship between the real GDP growth rate and the changes in the unemployment rate. Label the curve A.
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Chapter 18 / Exercise 20
Exploring Economics
Sexton Expert Verified
19. The table below shows different quantities of labor supplied and labor demanded at different wage rates. Wage rate, w Quantity of labor demanded (millions), LD Quantity of labor supplied (millions), LS \$6 100 20 8 80 40 10 60 60 12 40 80 14 20 100 Part 1: Use the multi-point line tool to draw the labor demand and labor supply curves. Be sure to label each point on each curve. Label them appropriately. Part 2: Use a double drop line tool to plot the equilibrium point (label it E). Part 3: Now, suppose that a minimum wage of \$12 is imposed on the labor market. Locate the resulting combination of employment and wage. Use a double drop line tool to plot this point and label it A.   CHAPTER 24 Question 1 A cap and trade system limits, or caps, the total amount of a negative externality, and  producers must buy licenses to generate that externality.
Question 2 According to the convergence hypothesis, the richest countries have the fastest growth  rate of real GDP per capita.
Question 3 All else equal, a nation that has a high rate of _____ will have a high rate of _____ and  therefore a high growth rate of _____ capital.
Question 4 All of the following are factors that drive productivity growth EXCEPT:
growth convergence.
Question 5 Based on historical economic growth, economists have noted that the estimated  aggregate production function: orrect!   shows that when holding the amount of human capital and the state of technology fixed, successive increases in the amount of physical capital per worker lead to smaller  increases in productivity. Question 6 Diminishing returns to physical capital means that as more and more physical capital is  added to fixed amounts of human capital with a fixed technology, eventually real GDP  per worker declines.    False   Question 7 Economists are optimistic that growth can continue in the face of resource scarcity because:    prices of scarce resources rise and provide incentives to find alternative energy  sources.
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