6. Suppose that declining resource supplies reduce potential output in

each period by 4%. What kind of monetary policy would be needed to

maintain a zero rate of inflation at full employment?

7. The Humphrey-Hawkins Act of 1978 required that the federal

government maintain an unemployment rate of 4% and hold the

inflation rate to less than 3%. What does the inflation-unemployment

relationship tell you about achieving such goals?

9. Many people think that the process of putting computer technology to

work and incorporating computers into the workplace is causing a

massive restructuring of virtually every institution of modern life. If

they are right, what are the implications for unemployment? What kind

of unemployment would be affected?

10 If technological change increases structural unemployment, why do most governments and economists encourage such change?