Question : 24.2 Meaning of Inflation 1) A one-time increase in the price : 1373931

24.2 Meaning of Inflation

1) A one-time increase in the price level

A) is rarely reported by the news media as inflation, but is nevertheless considered to be inflation by economists.

B) is regularly reported by the news media as inflation, but is not considered to be inflation by economists.

C) is rarely reported by the news media as inflation because it is not considered to be inflation by economists.

D) is regularly reported by the news media as inflation because it is considered to be inflation by economists.

2) When inflation is defined to be a condition of a continually rising price level, ________ economists agree with Milton Friedman’s proposition that inflation is a monetary phenomenon.

A) no

B) very few

C) about half of practicing

D) almost all

24.3 Views of Inflation

1) According to aggregate demand and supply analysis, inflation is caused by

A) supply shocks.

B) expansionary fiscal policies.

C) expansionary monetary policies.

D) rising prices.

2) According to aggregate demand and supply analysis, a continually increasing money supply causes a ________ in aggregate demand, everything else held constant.

A) continual increase

B) continual decrease

C) one-time increase

D) one-time decrease

3) According to aggregate demand and supply analysis of inflation and with everything else held constant, a continually increasing money supply causes

A) aggregate demand to increase along a stationary aggregate supply curve, leading to continually increasing aggregate output and prices.

B) aggregate supply to decrease along a stationary aggregate demand curve, leading to continually contracting aggregate output and prices.

C) aggregate demand to increase continually as aggregate supply decreases continually, leading to higher and higher price levels.

D) aggregate demand to decrease continually as aggregate supply increases continually, leading to higher and higher price levels.

4) Aggregate demand and supply analysis conclude that continuously growing ________ will cause the price level to rise continually, thus generating inflation.

A) money supply

B) government spending

C) interest rates

D) consumer expenditure

5) According to aggregate demand and supply analysis and with everything else held constant, a continuous increase in the money supply causes

A) the price level to increase, but has no lasting effect on the inflation rate.

B) the price level to fall.

C) inflation.

D) output to increase, but leaves the price level and inflation unchanged.

6) According to aggregate demand and supply analysis, an increase in government spending will cause aggregate demand to ________, causing output to ________ , everything else held constant.

A) increase; fall

B) increase; rise

C) decrease; fall

D) decrease; rise

7) Aggregate demand and supply analysis indicates that negative supply shocks

A) decrease the price level, but cannot decrease the inflation rate.

B) increase the price level, but cannot increase the inflation rate.

C) increase both the price level and the inflation rate.

D) decrease both the price level and the inflation rate.

8) Suppose that the economy is at the natural rate of output. In the absence of accommodating policy and everything else held constant, the net result of a negative supply shock is that

A) the economy returns to full employment at the initial price level.

B) the economy returns to full employment at a higher price level.

C) the economy returns to full employment at a lower price level.

D) aggregate output increases above the natural rate level, but only temporarily.

9) Explain and show graphically why continuous monetary growth is needed to generate inflation. Describe how the inflation process is generated.

10) Suppose that the economy is at the natural rate of output. Explain how a positive supply shock, followed by a more restrictive monetary policy, allows policymakers a painless way to reduce inflation.

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July 1, 2023

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.