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

In the quantity equation framework for understanding the determinants of long-run inflation,a rise in government spending ________ velocity,putting ________ pressure on inflation.

The "benefits" from government programs to reduce mismatch unemployment include reduction in

It is estimated that a 10 percent inflation in the United States would bear a shoe-leather cost of approximately ________ percent of GDP.

If there is a basic surplus and a negative total deficit,then

A needed reform in the U.S.income tax system that would reduce the costs of inflation is to

The natural rate of unemployment is that rate

A person who purchased a house with a small down payment just before an unanticipated inflation hits has ________ from the decision to be in debt,and has ________ by having an asset in the form of a house.

During the Global Economic Crisis,low unemployment rate in Germany is attributed to the policy of

Who among the following is NOT frictionally unemployed?

The government budget constraint tells us that to the extent that government expenditures are NOT financed by tax collection,the public ends up holding ________ government bonds and ________ money.

In recent years new automobile factories have opened in California and Ohio and closed in Detroit where the unemployment of automobile workers has increased.This unemployment could be decreased if

Gordon recommends that government macroeconomic policymakers focus on

Frictional unemployment is reduced by ________ in the number of weeks one is eligible for unemployment compensation,and ________ in the price of gasoline.

The natural unemployment rate is ________ unemployment rates.

The elimination of hourly rate assembly line jobs for unskilled workers by robots is an example of

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?

Excessive unemployment benefits and government overregulation are part of the ________ hypothesis of why a nation's ________ unemployment rate can be high.

Real income is redistributed from ________ in the case of ________ deflation.

Less-developed nations may have trouble with ________ financing of their deficits,and the only alternative creates the problem of ________.

Unemployment compensation,by ________ layoffs at firms whose sales have declined,________ the natural rate of unemployment.