Author Question: Which of the following is true of inflation? a. It is an increase in the general price level of ... (Read 47 times)

misspop · **on:** Jun 30, 2018

Which of the following is true of inflation?
a. It is an increase in the general price level of goods and services.
b. The purchasing power of money increases as the result of inflation.
c. Inflation is similar to interest payments on future money income, such as pensions and receipts from outstanding loans.
d. Inflation has no effect on real income.

Question 2

Unemployment compensation payments:
a. fall during periods of prosperity and thus reduce federal budget deficits.
b. fall during periods of prosperity and thus increase federal budget deficits.
c. fall during recessions and thus increase the problem of unemployment.
d. rise during periods of prosperity and thus increase federal budget deficits.
e. rise during recessions and thus increase the problem of unemployment.