Exam 23: The Goals of Macroeconomic Policy

A principal benefit of inflation is that it makes economic decisions easier.

In the analysis of potential GDP, labor and capital are considered

If wages rise by 12 percent at the same time prices rise by 3 percent, then the increase in real wages is equal to

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

GDP equals hours of work times

One basic way to boost the nation's growth rate is to

The fastest growing economy between 1870 and 1979 was

During inflationary periods

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

As the unemployment rate rises,

When you subtract the expected rate of inflation from the nominal rate of interest, you calculate the

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

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

The nominal rate of interest is the difference between the real rate and the expected rate of inflation.

Environmentalists worry that economic growth imposes costs on society.Among these costs are

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

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

The growth rate in potential GDP is equal to the growth rate in the population.

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

Which country most recently experienced hyperinflation?