problem 1) State two measures of economic growth.

problem 2) Describe why growth is a desirable goal.

problem 3) prepare down two major sources of growth.

problem 4) Describe the “rule of 70.”

problem 5) prepare average long-term growth rates for U.S. and qualifications of raw data.

problem 6) Summarize Global Perspective 8-1.

problem 7) Describe what you mean by a business cycle.

problem 8) describe the four phases of an idealized business cycle.

problem 9) prepare down two types of non-cyclical fluctuations in business activity.

problem 10) describe how innovation and/or random events might cause business cycles. 

problem 11) Describe why business cycles affect capital and consumer durable goods industries more than non-durable goods industries.

problem 12) prepare down causes of frictional, cyclical, and structural unemployment.

problem 13) Identify the full employment or natural rate of unemployment.

problem 14) describe how unemployment is measured by the Bureau of Labor Statistics (BLS).

problem 15) Evaluate strengths and limitations of BLS unemployment statistics.

problem 16) prepare down the economic costs of unemployment and the groups which bear unusually heavy unemployment burdens.

problem 17) State inflation and prepare two types of inflation.

problem 18) describe the predicted outcome of increased total demand on employment and inflation in ranges 1, 2, and 3 when presented with suitable diagram.

problem 19) Name three groups who are hurt and two groups who may benefit from unanticipated inflation.

problem 20) prepare three possible effects of inflation on output and employment.

problem 21) Compare U.S. inflation and unemployment rates to one or more industrialized nations.