If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?
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
According to the Phillips curve unemployment will return to the natural rate when ?
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
Menu costs in relation to inflation refers to ?
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
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
An increase in injections into the economy may lead to ?
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
Demand pull inflation may be caused by ?
A. An increase in costs
B. A reduction in interest rate
C. A reduction in government spending
D. An outward shift in aggregate supply