1: The “Nominal GDP growth rate” for the past 12 months has been approximately +3%, while the “Real GDP growth rate” has been approximately +2.1 %. Which number is more significant? Were these numbers good news or bad? Fully explain your answers.

2: What is our “Employment Goal”? What is the rationale for this goal? Why do economists worry when we reach this goal?

3: Our current price stability goal is to hold inflation at or below 3%. Why don’t we have a 0% inflation goal?

4: The book discusses four types (categories) of unemployment. Explain why structural unemployment can be more damaging and more difficult to correct than the other types.

5: Explain how inflation can redistribute income/wealth in our economy.