Unanticipated Inflation Tends to Penalize

question 42

Multiple Choice

Unanticipated inflation tends to penalize

• A)people who save money in financial institutions.
• B)individuals who borrow money from financial institutions.
• C)businesses which borrow money from financial institutions.
• D)governments that have a progressive personal income tax.

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Definitions:

Output Per Worker

A measure of labor productivity calculated by dividing total output by the number of workers.

GNP

Gross National Product, which is the total value of all goods and services produced by the residents of a country within a specific time period.

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the total value of all goods and services produced over a specific time period.

Natural Resources

Raw materials and components found in nature that can be used to produce goods and provide services, such as water, forests, and minerals.