One of the Reasons Macroeconomists Have Concerns About Inflation Is

question 46

Multiple Choice

One of the reasons macroeconomists have concerns about inflation is that inflation causes:

• A) real GDP to exceed nominal GDP.
• B) wages to rise as fast as prices.
• C) real GDP to rise.
• D) nominal GDP to fall.
• E) relative prices to change.

---

Definitions:

Reciprocity

A social principle that involves exchanging things with others for mutual benefit.

Attraction

A magnetic quality or force that draws individuals together, leading to friendship, love, or interest.

Kitty Genovese

A New York City woman whose 1964 murder prompted research into the bystander effect due to reports that witnesses failed to help her.

Brutal Assault

An extremely violent and aggressive attack on someone, typically resulting in severe physical harm.