Unemployment and Inflation
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1. What is meant by “quality (of capital) per worker� How does improvement in the quality of capital affect economic growth?
2. What is the difference between anticipated and unanticipated inflation? How do they differ in their effects on economic agents? Does inflation have no effects on the economy if it is anticipated? Expla
3. Explain how the law of diminishing marginal returns is related to the per-worker production function.
4. What is meant by industrial policy? Discuss the strengths and weaknesses of an industrial policy.
5. Describe the four types of unemployment. How do the four types differ in their effects on the economy and on the unemployed?
All answers must be at least 75 words, all references must be cited in APA format and you are required to use BOOK: MACRO 3 ECON STUDENT EDITION BY WILLIAM A MCEACHERN
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