If the government printed 100 trillion and sent it out to ev

If the government printed $100 trillion and sent it out to every citizen, what type of inflation would occur? O demand-pull inflation cost-push inflation deflation no price level change QUEST 10 points Save Answer What is the CPI in the base 100 O not enough information QUESTI 10 points Save Answer What is the inflation rate between 2000 and 2009 if the CPI was 172.2 in 2000 and 214.5 in 2009? 42.3% 114.5% 25% o 24.6% QUESTI 10 points Save Answer If your paycheck rises from $2000 a month to $2100 month and inflation is at 5% how has your real wage Oreal wage has risen real wage has fallen no impact on real wage not enough information

Solution

1. If government prints money and send it to every citizen, people will have more money to spend. Therefore, aggregate demand will increase, outweighing the aggregate supply. This will cause the price level to go up and it is known as demand pull inflation.

Answer-option A

2. CPI = (cost of basket in current period / cost of basket in base period) * 100

In base year, current period = base period

Therefore, CPI in base year = 100

Answer-option C

3. Inflation rate between 2000 and 2009 = [ (CPI in 2009 - CPI in 2000)/CPI in 2000] * 100 = [(214.5 - 172.2)/172.2] * 100 = 24.6?

Answer- option D