Exam 22: The Goals of Macroeconomic Policy

Over long periods of time, the growth rates of actual and potential GDP have been

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

Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent. At the end of the year prices have actually risen by 7 percent.

The public often overestimates the negative effects of inflation due to a focus on nominal rates of interest.

If an investor had a $200,000 long-term capital gain on a $50,000 investment from 1984 to 2010, her real annualized rate of return was most likely

The use of automated teller machines (ATMs) has caused some bank tellers to lose their jobs. This is an example of

Does the existence of unemployment insurance eliminate the economic costs of unemployment?

The basic data source to track the number of unemployed comes from a calculation of applications for new unemployment benefits.

Environmentalists concern with rapid economic growth is that it will

This group is most likely to be harmed by inflation.

Taxes on capital gains and interest decline as inflation rates increase.

Economists generally assume that ____ economic growth is better for society.

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

The fastest growing economy between 1870 and 1979 was

If the price of pizzas has risen from $4 to $5 at the same time that the price of an hour of spinning class has risen from $20 to $30, then

Someone unemployed for a long period of time due to technological change would be described as structurally unemployed.

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

In the contemporary United States, labor productivity has been growing at approximately

The growth rate of potential GDP is not affected by

Unemployment rates differ widely among various groups in the population.