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Chapter 18

Problem 2

What are the drawbacks to analyzing the global economy on a regional basis?

Problem 5

What are the different policy tools for dealing with cyclical unemployment?

Problem 7

How does indexing wage contracts to inflation help workers?

Problem 8

Use the AD/AS model to show how increases in government spending can lead to more inflation.

Problem 9

Show, using the AD/AS model, how governments can use monetary policy to decrease the price level.

Problem 12

What is the primary way in which economists measure standards of living?

Problem 13

What are some of the other ways of comparing the standard of living in countries around the world?

Problem 15

What other factors, aside from labor productivity, capital investment, and technology, impact the economic growth of a country? How?

Problem 17

What are the two types of unemployment problems?

Problem 21

What are the major issues with regard to trade imbalances for the U.S. economy?

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