Exam 9: The Goals of Stabilization Policy: Low Inflation and Low Unemployment

If other things are constant, the longer the average unemployed worker searches before accepting a job

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?

The natural rate of unemployment is in the vicinity of

Which of the following anti-inflation policies imposes costs on society?

In the quantity equation framework for understanding the determinants of long-run inflation, a drop in consumer confidence ________ velocity, putting ________ pressure on inflation.

A major difference between the costs of unemployment and the costs of inflation is that

When the economy is near the natural unemployment rate, most adult males looking for work are experiencing ________ unemployment.

Rising velocity means that people want to hold ________ nominal money per dollar of nominal GDP, which ________ the inflationary tendency of an increase in the money supply as one way of re-equating the demand and supply of money.

Suppose that the number of jobs for engineers expands by 10 percent per year, the number of new engineers by 5 percent per year while the number of automobile mechanics grows by 8 percent and the number of new automobile mechanics jobs grows by 3 percent. We conclude that

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

If a worker receives 6 percent higher nominal wages over a year in which inflation is 2 percent, the worker's real wages have

Mismatch and turnover unemployment, while conceptually easy to distinguish, are often difficult to identify. Ceteris paribus, a person out of work for two months would be classified by Gordon as

Which of the following statements is true?

Mismatch and turnover unemployment, while conceptually easy to distinguish, are often difficult to identify. Ceteris paribus, a person out of work for six months or an extended period would be classified by Gordon as

Government deficit financing is made easier by a rise in inflation when inflation ________ the private sector's demand for high-powered money, which the government can ________.

If a rise in anticipated inflation produces for some reason a less-than-equal rise in the nominal interest rate, this ________ the costs of anticipated inflation by ________ saving.

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

The natural unemployment rate is ________ unemployment rates.

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

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