Which of the Following Affect the Values of Inflation and Unemployment

question 128

Multiple Choice

Which of the following affect the values of inflation and unemployment?
I. changes in government spending
II. expectations about the price level
III. changes in nominal wages
IV. changes in money supply

• A) I and IV only
• B) I, II, and IV only
• C) II and III only
• D) I, II, III, and IV

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Definitions:

Income

The money or earnings received by an individual or organization, often from employment, business, investments, or other sources.

Utility Function

A mathematical representation of how a set of goods and services (or choices) are ranked according to their usefulness to a person.

Chocolate Factory

A facility where chocolate is produced, ranging from the processing of cocoa beans to the making of chocolate products.

Flood

An overflow of water that submerges land which is usually dry, often caused by heavy rainfall, river overflow, or other environmental conditions.