Question

Question 11 pts

The _____ the unemployment rate and the _____ the rate of inflation, the higher the misery index.

lower; higher

lower; lower

higher; lower

higher; higher

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Question 21 pts

Which of the following groups would be most likely to do well in a high unexpected inflation?

The poor.

Borrowers.

Those with fixed incomes.

Those with money in the bank.

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Question 31 pts

Which of the following statements best describes the problem of stagflation?

Both inflation and economic expansion are occurring simultaneously.

Prices are falling at the same time aggregate output is increasing.

It is a period where both prices and unemployment increase simultaneously.

There is excessive spending by consumers overheating the economy.

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Question 41 pts

If the unemployment rate rises from 5.5 to 7.0 and the rate of inflation declines from 4.0 to 3.0, then the misery index

has risen from 9.5 to 10.

has fallen from 1.5 to 1.

has risen from 1.5 to 4.

has fallen from 12.5 to 7

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Question 51 pts

Which of the following is an endogenous factor of the business cycle?

the innovation of new technology.

the inventory cycle.

underconsumption.

all of the above.

Answer 1

Answer for 11

As per Phillips curve emplyement and inflation are inversely related hence in this case if higer is the unemployment then higher is the inflation

therfore option D is correct response

Answer for 21

Those whi have borrowed at fixed rate of interest could gain from unexpected inflation

Hence Option B is correct answer

Answer for 31

Stagflation is when Prices and unemployemnt rises simultaneously,

Hence option C is correct

Answer for 41

Misery Rate+ Unemployment Rate + Inflation Rate=9.5 to 10

hence option A is correct

Answer for 51

All of the given options

Hence correct answer is D