Exam 6: The Goals Of Macroeconomic Policy

Full employment is defined by most economists as the minimization of

"Hidden" or "disguised" unemployment consists of:

If the capital stock increases,then the economy can produce ____ output with the ____ amount of labor.

The growth rate of potential GDP is the sum of two other growth rates.These other growth rates are

Policy should create an environment in which the economy can expand its productive capacity rapidly,because that is the ultimate source of higher living standards.This task is the realm of

If wages rise by 12 percent at the same time prices rise by 3 percent,then the increase in real wages is equal to

If an investor had a $100,000 long-term capital gain on a $100,000 investment from 1984 to 2010,her real rate of return was most likely

Which country most recently experienced hyperinflation?

The arithmetic difference between the nominal rate of interest and the expected rate of inflation is the

Structural unemployment arises when

Over long periods of time,the growth rates of actual and potential GDP have been

The incentive to lend increases as the real rate of interest decreases.

Which of the following scenarios best illustrates the concept of cyclical unemployment?

According to economists,one of the signs of an unhealthy economy is a(n)

The growth rate of potential GDP depends,among other factors,on the

The federal government collects taxes on

If you purchased shares of common stock in 1990 for $1,000 and sold them for $2,000 in 2001 you would be liable for taxes on

Someone unemployed for a long period of time due to technological change would be described as structurally unemployed.

The public often overestimates the negative effects of inflation due to a focus on nominal rates of interest.

If the capital stock decreases,then the economy will produce ____ output with the ____ amount of labor.