Exam 22: The Goals of Macroeconomic Policy

One of the following individuals tend to benefit from inflation.

Potential GDP would increase if

Does inflation always cause workers losses due to decreases in real wages? Why or why not?

Structural unemployment may be particularly severe for

An economy could produce above its potential GDP for a short period of time by

The unemployment rate is the number of unemployed people, expressed as

Discouraged workers are included in the

Given the labor force, either more capital or better technology will shift the production function downward.

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

Full employment is defined by all economists as precisely 5 percent of the labor force.

An increase in the capital stock would be expected to

When prices rise,

The term frictional unemployment refers to persons who are out of work

The production function has ____ on the horizontal axis.

Full employment is defined by most economists as the minimization of

The unemployment rate is equal to

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

One of the determinants of real GDP is output per hour of labor. This statistic is called labor

Americans viewed the 12 percent mortgage interest rates of the 1980s as exorbitantly high while they considered the 7 percent mortgage interest rates of the late 1990s as reasonable. This represents a confusion of

When the growth rates of actual and potential GDP diverge, they usually diverge because