Exam 23: The Goals of Macroeconomic Policy

If ten years ago the price of a movie ticket was $5 and the average hourly wage was $10, and today the price of a movie ticket is $8 and the average hourly wage is $20, then

Americans would probably be supportive of

If the rate of technical progress decreases, then the growth

Labor productivity is calculated by dividing GDP by

Distinguish between real rate of interest and nominal rate of interest.

If the price of pizzas has risen from $4 to $5 at the same time that the price of an hour of spinning class has risen from $20 to $30, then

Frictional unemployment will typically be a short-term problem for someone between jobs.

The distinction between real and nominal rates of interest is understood by

If borrowers and lenders expect a higher rate of inflation,

Define the following terms carefully: (a)Full employment (b)Purchasing power of money (c)Real wage rate (d)Relative price

If the population increase in India is smaller than the increase in Indian real GDP, then GDP per capita will

Environmentalists worry that economic growth imposes costs on society.Among these costs are

Richard loses his job at the railroad due to a downturn in general business conditions.He is experiencing

Unemployment insurance benefits the macroeconomy by supporting purchasing power.

The unemployment rate is equal to

Faster economic growth in the United States may lead to the serious macroeconomic problem of higher

When inflation occurs,

As the unemployment rate rises,

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

Changes in relative prices usually lead to increases in real income because prices have changed.