Exam 10: The Goals of Stabilization Policy: Low Inflation and Low Unemployment

In the famous allegorical work The Wonderful Wizard of Oz,the symbol for William Jennings Bryant (one-time leader of the free-silver movement)was the

A legitimate objection to the government issuance of "indexed" bonds is that they

In the late 1980s,Canada embarked on an ambitious policy of reducing inflation to zero.Inflation did come down,while the unemployment rate ________,which ________ the U.S.disinflation experience of the 1980s.

If the market rate of interest is 13%,the growth of nominal GDP 9%,and the growth of real GDP 2%,then

In the United States,the long-run average growth rate of velocity in recent decades has been

Which of the following countries successfully combated hyperinflation only to lapse back in to hyperinflation in 2002?

"Shoe-leather costs" refer to

The most basic cause of unemployment in the United States is that

A worker that quits her job

"Turnover" unemployment is another name for ________ unemployment.

If the nominal interest rate is 10% and expected inflation is 5%,the real expected interest rate is

Higher inflation is particularly damaging to the real value of

Over a year,the money supply in a nation grew by 8 percent,while velocity rose by 2 percent and real GDP rose by 3 percent.This results in an inflation over the year of ________ percent.

The textbook uses as its precise definition of hyperinflation an inflation rate

It appears that many business firms discriminate against hiring young women of child bearing age in the United States and that this type of discrimination has been reduced in Europe.This may be an example of successful government intervention because

The "nominal" interest rate is the

Inflation has no effect on an economy's well-being if

When the actual exceeds the natural unemployment rate,this means that we have ________ unemployment.

For inflation to have no real effect on the economy,leaving all decisions and their real outcomes unchanged,five conditions must be met.Which of the following incorrectly states one of those conditions?

In the quantity equation framework for understanding the determinants of long-run inflation,a depreciation of the exchange rate ________ velocity,putting ________ pressure on inflation.