Exam 9: 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.

Which of the following will not affect the natural rate of unemployment?

Governments promote long-run inflation when they depend on ________ to finance their expenditures.

The textbook cites an estimate of the "sacrifice ratio" in the United States of approximately

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

Higher inflation is particularly damaging to the real value of

Unanticipated inflation will hurt ________ and help ________.

Unanticipated inflation will insure that

The costs imposed by inflation should be lessened in the future because of the following reform that took place during the early 1980s

The "shoe-leather" cost of a fully anticipated inflation is

In the 1980s, the federal government gradually ________ interest-rate ceiling on deposits at commercial banks and thrift institutions, which has ________ the costs of inflation.

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.

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

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

We have drawn the SAS and SP curves as straight lines for convenience. More realistically, rising output ________ the structural unemployment problem and the effect of this on wages causes those curves to ________ in slope.

Unemployment due to the location or skill requirements of job vacancies not matching the location or skills of the unemployed is called ________ unemployment.

According to Gordon, there is no pressing need for policies to reduce ________ 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?

A one percent increase in the unemployment rate is statistically associated with ________ more deaths.

Suppose there is a shortage of computer programmers, but firms refuse to hire unemployed typists and train them. This is one reason for ________ unemployment.