Little inflation helps reduce unemployment

Assignment Help Business Economics
Reference no: EM131090377

On the issue of whether or not a little inflation helps reduce unemployment:

A. Economists generally agree that it does not, because wages will rise along with inflation

B. The issue is largely settled in that inflation does not affect unemployment at all

C. The issue is still hotly debated by opposing camps of economists

D. Economists generally agree that it does, because a little inflation enhances firm's profitability

Reference no: EM131090377

Questions Cloud

Governments can use subsidies to increase demand : Governments can use subsidies to increase demand. For instance, a government can pay farmers to use organic fertilizers rather than traditional fertilizers. That subsidy increases the demand for organic fertilizer. Which industry would probably spend..
What is the maximum revenue : The owner of a luxury motor yacht that sails among the 4000 Greek islands charges $344/person/day if exactly 20 people sign up for the cruise. However, if more than 20 people sign up (up to the maximum capacity of 100) for the cruise, then each fare ..
How does increasing the mobility of capital change : How does increasing the mobility of capital change the effectiveness of fiscal policy under fixed and floating exchange rate regimes
Market for apartments in equilibrium : Draw, on a large graph, a market for apartments in equilibrium, and then apply a binding rent control. Explain and indicate how the relevant economic agents are affected by the application of this price control, and why economists say rent control is..
Little inflation helps reduce unemployment : On the issue of whether or not a little inflation helps reduce unemployment:
Exporting vs FDI-the proximity-concentration trade-off : Your firm wants to sell its product in each of several foreign countries, and you must decide whether to do so by exporting or by producing locally for that market through FDI. If you export to a given country located at a distance d, what would the ..
What is the pre-tax annual rate of return on this bond : You buy a bond for $1118 that pays $20 interest every 6 months. It will reach maturity in 9 years at which time it will return its face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond?
Income from recycling plastics is expected : Income from recycling plastics is expected to be $2000 in Year 1 and increase by $500 a year for each of the next 5 years if you buy a sorting machine. ($2000 in Year 1, $2500 in Year 2, etc.) Draw a cash flow diagram showing your expected income in ..
Calculate effective interest rate for compounding frequency : Calculate the effective interest rate for each compounding frequency shown assuming the annual nominal interest rate = 21.6%.

Reviews

Write a Review

Business Economics Questions & Answers

  What will total cost function be rice loafs are produced

Kathy's Bakery is a local full-service bakery in Omaha, Nebraska. Kathy sells loaves of wheat bread for $3 a loaf. Of this amount, $1.50 is profit contribution. Assuming average variable costs are constant at all output levels, what is Kathy's total ..

  Signals to firm owners that scarce resources

Which of the following signals to firm owners that scarce resources might be better allocated to a different industry?

  How much interest will be paid over the term of the loan

The selling price of a house is $1,375,000. You have enough money for a 15% down payment with the balance authorized at 4% annual compounded monthly for 30 years. How much will the monthly payments be? How much interest will be paid over the term of ..

  About the cross-elasticity of demand

“The Mexican arm of U.S. Internet giant America Online Inc. said on Wednesday it started a financing program to help aid in the purchase of personal computers, joining a list of companies that have launched similar programs to promote Internet use. W..

  Data-plotting tool will automatically connect

The data-plotting tool will automatically connect the points with a line.

  Derive expression for the steady-state unemployment rate

Consider a model of unemployment where the change in the unemployment rate (u) is given by Δu = (b+s)-(b+s+f)u, where b is the rate of entry in the labor force, s is the separation rate, and f is the job findings rate. Derive an expression for the st..

  Present value of the time of the buyout

On October 4, 1996, Tenet Healthcare Corporation, the second-largest hospital company in the United States at that time, announced that it would buy Ornda Healthcorp.† what would Tenet Corporation consider to be the 15-year present value of Ornda Hea..

  Compute marginal cost and average cost

Assume the hospital is a monopolist with a demand function given by p = 404−2x, where p is the price of hospital care and x is the quantity of hospital care. Assume that the hospital’s cost function is given by C = 300+4x+8x 2 , where C is total cost..

  Nominal income-consumer price index

Suppose your nominal income in 1995 was $24,000. Suppose, too, that the Consumer Price Index for 2012 was 2.5 and that the base year for this index was 1995. How much nominal income would you need in 2012 in order to match the spending power of your ..

  Makes adopting-implementing common macroeconomic policies

What (what circumstances) makes adopting and implementing common macroeconomic policies (monetary, exchange rate) challenging in a Common Market area.

  What was the amount he withdrew at the end of eighth year

Mr Smith has saved $1800 each year for 20 years. A year after the saving period ended, Mr Smith withdrew $7500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5000 per year. In the eighth year, he decided to withd..

  Affect the consumer price index

In October 2011, Apple introduced the iPhone 4S, which had new features, including camera and voice control, but sold at the same price as the previous iPhone model. How did the introduction of the iPhone 4S affect the Consumer Price Index? What fact..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd