Unit 3 Assessment
1. What does full employment level mean, and how does it differ from the
unemployment rate?
2. List and describe the three forms of unemployment and the two forms of inflation.
3. How does fiscal policy differ from monetary policy?
4. Calculate the inflation rate given a change in the CPI from 165.7 to 170.67.
5. What perspective does a monetarist typically have regarding the Fed’s management
of the money supply?
6. What main difference exists between prices at the macroeconomic and the
microeconomic level of the economy?
7. With reference to borrowers and savers, explain how which group benefits and which
loses as a consequence of inflation?
8. Describe a scenario in which there would be too many dollars chasing too few goods.
9. In terms of employment statistics, what happens to unemployed workers who
discontinue their job search?
10. What term do economists apply to cases in which self-employed workers draw
unemployment compensation?
11. What is hyperinflation?
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