1. When policy makers discuss policies that encourage long-run growth in per capita GDP, they often mention policies aimed at reducing the growth rate in population. If effective, why might this policy improve long-run growth? Also, what are the potential cost associated with this policies?
2. Explain why inflation reduces the real value of nominal GDP per capita?
3. During the 1960s societal norms regarding working women were changing, and many women who have been housewives began working outside the home. How would you expect this new norm to change the labor-force participation rate? What about the unemployment rate?