When Actual Inflation Is Greater Than Expected Inflation

question 65

Multiple Choice

When actual inflation is greater than expected inflation

• A)the natural rate of unemployment rises, according to Phillips-curve analysis.
• B)cyclical unemployment rises, according to Phillips-curve analysis.
• C)there are transfers from borrowers to lenders.
• D)there are transfers from lenders to borrowers.

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Definitions:

Owner's Capital

The amount of money and assets the owner has invested in a business.

Revenues

The complete revenue earned from selling goods or services that are fundamental to a company's core business activities.

Expenses

Monetary costs incurred in the operation of a business, leading to the creation of liabilities or decrease in assets.

Basic Accounting Equation

The fundamental equation of double-entry bookkeeping, stating that assets equal liabilities plus owner's equity.