Exam 22: The Goals of Macroeconomic Policy

Labor productivity is calculated by dividing GDP by

The nominal interest rate is the sum of the

To protect themselves from the effects of inflation, lenders try to estimate the expected rate of inflation.

The social costs of hyperinflation include i) decreases in purchasing power ii) borrowing and lending may cease iii) the value of savings will diminish.

The amount of goods and services the economy could produce if the labor force is fully employed is called

The program of unemployment insurance in the United States was created during the

If an investor had a $25,000 long-term capital gain on a $100,000 investment from 1984 to 2010, her real rate of return was most likely

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

Martha was a grocery store clerk a local supermarket, until her job was replaced by self-checkout machines and the rise of online grocery deliveries. Show now must be trained for a completely new profession. Marth is experiencing

High unemployment is socially wasteful. Why?

A decrease in the stock of capital may

Real GDP is the product of the

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

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

Hours of work multiplied by output per hour equals

The United States has never suffered through periods of hyperinflation in its history.

Adding together the growth rate of labor input and the growth rate of labor productivity yields the growth rate of

Economic growth is most likely to solve the problems of

Prior to the Great Recession of 2007-2009, labor input in the United States was growing at nearly

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