Exam 22: The Goals of Macroeconomic Policy

The reason that inflation rarely harms workers is that

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

Someone who is out of work because he or she is between jobs is experiencing

Compared to the unemployed during the Great Depression, persons unemployed in today's economy are

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

The growth rates of actual and potential GDP

Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent.At the end of the year prices have actually risen by 7 percent.

During inflationary periods, consumers will

Labor productivity measures output per hour of work.

How do the labor force, the nation's capital stock, and the rate of technical progress contribute to potential GDP growth and labor productivity?

If part of the labor force is unemployed, the foregone goods and services are

Hyperinflations are usually made possible by

The costs of unemployment to an individual out of work are larger now than in the 1930s.

Changes in relative prices during inflationary periods usually lead to

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

Sharon buys some common stock in 1990 for $10,000 and sells it in 2000 for $15,000.During the same period, prices have risen by 75 percent.The net result of Sharon's stock purchases is that she will

Paying into a pension fund while you are earning wages and salaries is equivalent to

The term "unemployed" includes all people who want a job, but don't have one.

Which of the following countries has not experienced hyperinflation in the twentieth century?

When governments rapidly increase the supply of money, the usual result is