Exam 6: The Goals of Macroeconomic Policy

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

The reason that inflation rarely harms workers is that

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

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

Unemployment insurance cannot eliminate the national costs of lost output due to unemployed labor.

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

If a borrower arbitrarily gains purchasing power as the result of a particular loan agreement,then

Policy should create an environment in which the economy can expand its productive capacity rapidly,because that is the ultimate source of higher living standards.This task is the realm of

Cyclical unemployment occurs when real GDP falls below potential GDP.

Saving is often discouraged by usury laws during inflationary periods because

A decrease in the capital stock would be expected to

One of the factors contributing to the existence of frictional unemployment is

Which of the following would impose the greatest costs to society?

The main cost that low inflation imposes on an economy is that low inflation

The most likely group of the following that would be eligible for unemployment insurance benefits is

Which of the following groups would most likely to benefit from inflation?

The growth rate of potential GDP depends,among other factors,on the

When comparing the costs of inflation to society,it is important to distinguish between

Increasing economic growth may be beneficial because

Hyperinflations are usually made possible by