Exam 6: Macroeconomic Measurements: Prices and Unemployment

Exhibit 6-2 -In an economy with a population of 100 million persons,50 million hold civilian jobs and 20 million are not working but are looking for a job.The number of persons in the civilian labor force is

Which of the following is false?

Exhibit 6-2 -Refer to Exhibit 6-2.The employment rate in year 2 is

Smith's income was $50,000 in year 1 and $55,600 in year 2.The CPI was 114 in year 1 and 124 in year 2.What was the approximate percentage change in Smith's real income between the two years?

The CPI in the base year is necessarily 100.

Suppose the civilian non-institutional population equals 100,000 persons; the civilian labor force equals 75,000 persons; there are 70,000 employed persons and 5,000 unemployed persons.If 5,000 persons who are currently "not in the labor force" decide to join the civilian labor force,and 3,000 pf them are unemployed,then

In year 1 the CPI is 180,and in year 2 the CPI is 192.From year 1 to year 2,Javier's salary rises from $40,000 to $42,000,and Tom's salary rises from $55,000 to $57,000.Who is "more than keeping up with inflation"?

One measure of the inflation rate is the

If Jorge is temporarily absent from his regular job because of an industrial dispute,the Bureau of Labor Statistics will classify him as unemployed.

Some economists argue that the recent relatively high rate of unemployment has resulted in part from the fact that some people have not made the adjustment to modern technologies.

Exhibit 6-2 -Refer to Exhibit 6-2.The unemployment rate in year 1 is

The cyclical unemployment rate is defined as the __________ unemployment rates.

Exhibit 6-2 -Refer to Exhibit 6-2.How many people are not in the labor force in year 1?

In year 1 the CPI is 181,and in year 2 the CPI is 195.If Dennis's salary was $95,000 in year 1,what is the minimum salary he must earn in year 2 to "keep up with inflation"?

Exhibit 6-1 -Refer to Exhibit 6-1.Prices rose by __________ percent from Year 4 to Year 5.

A movie star was paid $1 million in 1960 to do a movie.The CPI was 29.3 in 1960 and the CPI in 2012 was 226.665.Approximately how much did the movie star earn in 2012 dollars?

Describe the difference between the employment rate and the labor force participation rate (LFPR). Under what circumstance would the two be equal to one another?

Which of the following statements is false?

The CPI was 238 in one year and 244 the following year.How much did prices rise between these two years?

Exhibit 6-2 -In an economy with 100 million people,70 million hold civilian jobs and 19 million are not working but are looking for jobs.The unemployment rate is