Exam 6: The Goals Of Macroeconomic Policy

During the course of the twentieth century,the average workweek in the United States has gotten shorter and Americans have enjoyed greater amounts of leisure time.How has this development affected potential GDP and labor productivity?

One of the factors contributing to the existence of frictional unemployment is

Older people often reminisce about the "good old days" when prices were much lower.This is misplaced nostalgia primarily because in the "good old days,"

If the labor force grows faster than the number employed,the

Small differences in economic growth rates translate into significant differences in living standards.

The German inflation rate after World War I was measured in the thousands of percents.This condition is referred to as

Jorge,a computer programmer,was laid off when his firm went out of business.He began to look for work,but was struck by a car and his hands and one leg were broken.He is unable to use the computer to seek jobs,or to go to interviews for jobs.It is now week 5 of 6 weeks in his cast.According to the current rules,Jorge will probably be classified as:

Full employment implies which of the following is reduced to zero?

In 2009 the average unemployment rate in U.S.averaged

Real wages more accurately reflect the payment to labor because they are adjusted for the effects of inflation.

If inflation is expected by both borrowers and lenders,then we would expect

If borrowers and lenders expect a higher rate of inflation,

Inflation is a very minor problem for lenders because it is relatively easy to estimate future rates of inflation.

When nominal interest rates are held below inflation rates,then households will have an incentive to

The relationship between industrial capacity percentage and

An increase in capital stock will shift the production function

Which of the following groups would have the lowest unemployment rates?

Unemployment insurance benefits the macroeconomy by supporting purchasing power.

The rate of interest written on a contract between a borrower and a lender is the

A principal benefit of inflation is that it makes economic decisions easier.