Question

(16)
Which of the following pairs of economic concepts are usually associated with each other? Stagflation and cost-push inflation Stagflation and demand-pull inflation Economic expansion and cost-push inflation Stagflation and the wage-price spiral
(17)
The Y variable in the formula for the quantity theory of money stands for the total output of the economy. the price level. the money supply. the equilibrium intersection of supply and demand.
(18)
A price index in one year was 120. The next year the same index was 140. What was the approximate percentage change in the price level as measured by that price index? 12% 17% 20% 40%
(19)
Which of the following statements about contractions is true? Significant or prolonged contractions are called booms. A contraction usually follows a trough in the business cycle. Contractions are periods when the real GDP grows slower than the trend. The government usually does not have a part in moderating the business cycle when a contraction is occurring.
(20)
If an employer pays an efficiency wage, worker turnover will increase. worker health may be adversely affected. worker quality may be adversely affected. unemployment may increase.

Answer 1

16) answer: Stagflation and cost push inflation

Stagflation is closely associated with inflation because in Stagflation the economic growth will be stagnant and the cost of goods and services will increase. In cost push inflation there will be an increase of good and services in the economy.

17) Answer: Total output of economy

In quantity theory of money the equation is

MV = PY

Y = Total output of economy

P = Price level

M = Money quantity

V = circulation of money

18) Answer: 17%

% Change = ((140/120)-1)*100

% change = 16.67%

Approximately 17%

19) Answer: Contraction is the phase where real GDP grows slower than trend

During contraction phase there will be a slow growth of economy and the real GDP as the economy plunges into a contract state where it leads to economic hardships in the country