12 Questions
What happens to the value of money when there is an increase in the money supply?
It decreases
What happens to the price level when there is an increase in the money supply?
It increases
What does the quantity equation (MV=PY) relate the quantity of money (M) to?
Nominal value of output (P Y)
What does the velocity of money refer to?
The speed at which money changes hands
What is one of the individual costs of unemployment mentioned in the text?
Increased risk of slipping into poverty
How does unemployment impact economic activity according to the text?
Unemployment can impact on economic activity and create further unemployment
What is one of the social costs of unemployment mentioned in the text?
Deteriorating health
What is one effect of the reverse multiplier effect mentioned in the text?
Increase in demand for luxury goods
What is one consequence of inflation according to the text?
Distorted consumer decisions
How does inflation affect the tax burden on capital gains?
It increases the tax burden
What is a consequence of central bank-induced inflation according to the text?
Erosion of the real value of the unit of account
What is a unique cost of unexpected inflation highlighted in the text?
Arbitrary redistribution of wealth
Explore the individual and socioeconomic costs of unemployment as discussed in Mankiw and Taylor's Economics 4th Edition. Topics include loss of earnings, increased risk of poverty, deterioration of health, and economic opportunity cost.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
