The best definition of inflation is a(n) temporary increase in prices. increase in the price of one important commodity such as food. persistent increase in the general level of prices as measured by a price index. increase in the purchasing power of the dollar. D Question 6 1 pts Higher unemployment insurance benefits tend to increase unemployment because they reduce the opportunity cost of job search and, hence, increase the search time. increase the opportunity cost of job search and, hence, increase the search time. O reduce the opportunity cost of job search and, hence, decrease the search time. increase the opportunity cost of job search and, hence, decrease the search time. D Question 7 1 pts Potential output is the O maximum rate of output that can ever be achieved. highest rate of output that has ever been achieved in the past. maximum sustainable output level consistent with the economy's resource base and current institutions. O the rate of output present when the general level of prices is unstable. Question 8 1 pts Full employment means which of the following is zero? O structural unemployment cyclical unemployment