12. In a period of unexpected deflation, a. Borrowers find that it is easier for them to make their loan payments, since prices are falling b. Lenders benefit, since there are more people eager to borrow money during a period of deflation . Lenders benefit, since they are repaid dollars with greater real value than they anticipated when signi the loan contract. d. Neither borrowers nor lenders benefit, because the deflation was unexpected e. There will be a benefit to lenders, but there will be no effect on borrowers 13. Which of the following is true? a. The two principal goals of macroeconomic policy are price stability and low frictional unemployment b. The primary goals of macroeconomic policy are price stability and zero unemployment c. The primary goals of macroeconomic policy are price stability and low unemployment d. In order to achieve the two primary goals of macroeconomic policy of price stability and low unemployment, it is necessary for policymakers to reduce the level of frictional unemployment e. The primary goal of macroeconomic policy is price stability even if that creates high levels of unemployment 14. Which of these is necessary for a person to be considered unemployed? a. One must have worked fewer hours than desired. b. One must not have a job, whether or not they are looking for work. c. One must have a full-time job that does not use all of your skills d. One must be looking for a job, regardless of how many hours you currently work. e. One must not have a job and be looking for a job 15. Job search refers to the time workers spend looking for employment. Job search results in a. Cyclical unemployment. b. Structural unemployment. C. Frictional unemployment. d. Both structural and frictional unemployment. e. A natural rate of unemployment equal to zero. 16. The extra time and effort to make transactions due to inflation imposes a. Shoe-leather costs b. Menu costs c. Unit-of-account costs d. Deflation costs e. Disinflation costs