Effects on Distribution of Income and Wealth: This means that the government's ability to tax gives the backing of all of the goods and services in the economy to the Federal Reserve's bank notes. Nominal incomes generally increase with inflation becausewhen inflation is anticipated, average nominal incomes also increase by the same percentage as the rate of inflationexpected inflation does not affect the purchasing power of the average consumerInflation can affect the distribution of income becausepeople with incomes rising faster than the rate of inflation enjoy an increasing purchasing power, while people with incomes rising more slowly than the rate of inflation are hurt by a decreasing purchasing power.The type of inflation that is a greater problem to society isunanticipated inflation, since it causes greater redistribution of income between thos making payments and those awaiting payments in the futureAll of the following are problems caused by deflation exceptfirms make higher profits as consumers buy more goods and servicesSuppose that the inflation rate turns out to be much lower than most people expected..a borrower will lose from the situation while a lender will gainFrank will have a higher real incomes although he has a lower nominal income.....If inflation is unexpectedly high, borrowers will benefit and lenders will be harmedWhich of the following is not one of the conditions someone needs to meet to be counted as unemployedThey had worked only one hour per week during the previous four weeksAll of the following are problems in measuring the unemployment rate except thatpeople on active military service are included as unemployedWhen there are part-time workers, the official BLS measure of the unemployment rate ___ the true degree of unemploymentpercentage of the working age population that is employedWhen an unemployed person drops out of the labor force, the unemployment rateunderstates the true degree of joblessness in the economyWhen an unemployed person drops out of the labor force, itWhich one of the following depicts an accurate description of the household survey and the establishment survey?The household survey interviews households and measures the unemployment rate whereas the establishment survey interviews businesses and measures the employment ratethe establishment survey because it is determined by actual payroll records rather than unverified answersThe employment-population ratio provides the "best summary" of the state of the job market rather than the unemployment rate because it measures the fraction of the population thatRelative to the household survey, which of the following is a strength of the establishment survey?The establishment survey is determined by actual payrolls, rather than by the unverified answers of the household surveyThe type of unemployment most likely to result in hardship for the people who are unemployed isstructural because this type of unemployment requires retraining to acquire new jobs skillsExperts in hand-drawn animation who remain unemployed due to the film industry's switch to computer-generated animations are considered to be..The short-term unemployment that arises from the process of matching workers with jobs is calledUnemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is calledWorkers who lose their jobs because of a recession are experiencingWhen the economy is at full employment, which types of unemployment remain?The normal underlying level of unemployment in the economy isincreases the unemployment rate since firms pay a higher-than-market wage that increases the quantity of labor suppliedThe price index which is used to measure changes in the cost of living is theWhich of the following is not considered one of the potential biases in calculation the consumer price indexWhich of the following steps has not been taken by the BLS to reduce the size of the bias in the CPTThe BLS has expanded the number of stores from which it collects the price information to reduce the coverage biasThe quantities of the products households purchase in the current yearThe difference between a nominal variable and a real variable is thatnominal is calculated in the current year prices and real is measured in dollars in the base yearthe nominal interest rate will be lower than the real interest rateDO you agree with the reporters definition of deflationno, deflation is defined as a negative inflation rate