which of the following is a microeconomic consequence of inflation?

D) All of the above. C) the nation's economy as a whole. Effects on Income and Employment 4. The effects are: 1. Macroeconomics is the study of economies on the national, regional or global scale. ( a. Important microeconomic consequences of inflation include all of the following except: A. C) A wealth effect. Many governments have set their central banks a target for a low but positive rate of inflation.They believe that persistently high inflation can have damaging economic and social consequences.. Income redistribution: One risk of higher inflation is that it has a regressive effect on lower-income families and older people in society. C)positive economics. This will result in negative implications on the economic growth in the economy. Answer: D Type: Basic Understanding Page: 131 29. Answer: TRUE In contrast macroeconomics involves the sum total of economic activity, dealing with the issues such as growth, inflation, and unemployment. c) The wealth effect. D) All of the above. The impact that the money supply has on inflation. Effects on Distribution of Income and Wealth 2. Income effects. The reasons for increases in the price of soft drinks. B) An income effect. Effects on Production 3. e. When this happens, prices rise and the currency within the economy is worth less than it … Effects on the Government Finance 6. Firms will postpone their investment due to uncertainty in the market. B) The price effect. Effects on Distribution of Income and […] C) A lower real GDP. Which of the following is a microeconomic consequence of inflation? d) None of the above Macroeconomics is best described as the study of: A) very large issues. D) the relationship between inflation and wage inequality. b) Greater real income. A microeconomic consequence of inflation is: A) Higher unemployment. Which of the following is the best example of a microeconomic topic? 13) 14)Which of the following topics would be studied in a microeconomics course? D)normative economics. This key difference alters how the two approach economic situations. 1. In the past, some of the world economies (e.g., Germany after the First World War (1914-1918), Latin American coun­tries in the 1980s) had been greatly ravaged by hyperinflation. 1) Macroeconomics is concerned with inflation or deflation, output growth and unemployment. The effect of inflation is not distributed evenly in the economy, and as a consequence there are hidden costs to some and benefits to others from this decrease in the purchasing power of money. Effects on Growth. c. The effect that federal budget deficits have on the interest rate. d. The tradeoff between inflation and unemployment. 2. ADVERTISEMENTS: The following points highlight the six major effects of inflation. The German inflation of 1920s was also catastrophic: During 1922, the German price level went up 5,470 per cent. Answer: TRUE 2) Macroeconomics is concerned with the market price and equilibrium quantity of each good or service. Which of the following is a microeconomic consequence of inflation? B. C. Wealth effects. High inflation rate may result in the following adverse effects on the economy: Greater uncertainty: There may be greater uncertainty for both firms and households. Inflation occurs when an economy grows due to increased spending. But the consequence of hyperinfla­tion are disastrous. Answer: FALSE 3) The employment rate is the number of people employed divided by number of people in the labor force. A) A price effect. B) the choices made by individual households, firms, and governments. Effects on Business and Trade 5. a) Greater unemployment. B)macroeconomics. Consequences of inflation. A)how a tax rate increase will impact total production B)comparing inflation rates across countries C)how a trade agreement between the United States and Mexico affects both nations' A)microeconomics. Cyclical unemployment. For example, with inflation, those segments in society which own physical assets (e.g. De lo so b.

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