Exam 22: The Goals of Macroeconomic Policy

Hyperinflations are usually made possible by

A nation's standard of living depends on its population and labor productivity.

During periods of high inflation, such as the 1979-1980 period, the existence of usury laws may cause

A nation's growth rate can be increased by

Unemployment insurance is a part of

The federal government collects taxes on

Economists feel that taxing nominal capital gains imposes costs on the economy due to

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

Older people often reminisce about the "good old days" when prices were much lower. This is misplaced nostalgia primarily because in the "good old days,"

Rachel agrees to lend Phoebe $100 for six months and charges her interest of 2 percent. At the end of the six-month period, prices have risen by 4 percent.

Economists generally assume that faster economic growth is negative for society.

One of the distinguishing differences between periods of low inflation and periods of high inflation is that

Explain how the current U.S. tax system levies taxes on capital gains and earned interest. What does this mean for the costs of inflation?

What two growth rates comprise of the growth rate of potential GDP?

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

After a particular loan has been paid off, neither the borrower nor the lender has lost purchasing power. Therefore, it must be true that actual inflation was

Jorge is the proud owner of The Peppered Speakeasy. When the economy collapsed, he had to lay off 20 percent of his employees. They must look for new work and are considered

Studies on fast-food stores in Texas and New Jersey suggest that the federal minimum wage law

When unexpected inflation occurs,

The growth rate of potential GDP is the sum of the growth rates of