Inflation & Productivity

A. Nominal wages are equal to expected wages
B. Real wages are back at equilibrium level
C. Nominal wages are growing faster than inflation
D. Inflation is higher than the growth of nominal wages

A. Costs of finding better rates of return
B. Costs of altering price lists
C. Costs of money increasing its value
D. Costs of revaluing the currency

A. Shift aggregate demand
B. Shift aggregate supply
C. Reduce the natural rate of unemployment
D. Increase the productivity of employees

A. An outward shift of aggregate demand- and demand-pull inflation
B. An outward shift of aggregate demand and cost push inflation
C. An outward shift of aggregate supply and demand-pull inflation
D. An outward shift of aggregate supply and cost push inflation

A. An increase in costs
B. A reduction in interest rate
C. A reduction in government spending
D. An outward shift in aggregate supply

A. neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract
B. None of these answers
C. borrowers will gain at the expense of lenders
D. lenders will gain at the expense of borrowers

A. The nominal rate of interest is 15 percent and the inflation rate is 14 percent
B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent
C. The nominal rate of interest is 12 percent and the inflation rate is 9 percent
D. The nominal rate of interest is 5 percent and the inflation rate are 1 percent

A. none of these answers
B. The nominal interest rate is the inflation rate minus the real interest rate
C. The real interest rate is the nominal interest rate minus the inflation rate
D. The nominal interest rate is the real interest rate minus the inflation rate.

A. 4 percent
B. 10 percent
C. -4 percent
D. 3 percent
E. 21 percent

A. Rs459.25
B. Rs418.75
C. Rs300
D. None of these