Exam 5: Monitoring Jobs and Inflation

The table below shows the price index for Zimbabwe starting in 2000. Which of the following statements correctly describe the behavior of prices in Zimbabwe? I. The cost of the CPI basket increased. II. The inflation rate was 73.4 percent between 2000 and 2001.

In 2007, the CPI was 177.1 and in 2008 the CPI was 180.9. What was the inflation rate between these two years?

A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. The people laid off are considered

Nicholas does not possess marketable job skills; therefore, he is

-The tables above give the purchases of an average consumer in a small economy. (These consumers purchase on shampoo and pizza.) Suppose 2006 is the reference base period. a) What is the cost of the CPI basket in 2006 and 2007? b) What is the CPI in 2006 and in 2007? c) What is the inflation rate between 2006 and 2007?

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Discouraged workers are

-The labor force participation rate is

If the inflation rate is negative, the price level in an economy is

Aggregate hours has an upward trend over the last 30 years.

"People don't have any money to spend on cool gadgets," stated an analyst reporting on the technology industry in 2008. He expected Silicon Valley (where many technology- based firms are located) to shed up to 10% of its workforce as a result of poor sales and declining profits for those fir For example, advanced Micro Devices planned to lay off 3% of its workforce while Applied Materia planned to cut its staff by 12%. These job losses in the technology industry are an example of unemployment.

If the CPI is 120, this means that

Why is unemployment a problem?

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the labor force participation rate is

Give an example of a cyclically unemployed person.

Cyclical unemployment is the result of

Assume the inflation rate falls from 4 percent to 2 percent. This means that

If the number of people unemployed is 100, the number of people employed is 1000, and the working- age population is 1400, then the labor force participation rate is

The natural unemployment rate is the unemployment rate that exists when there is no

If this year's price level is 126 and last year's price level was 120, the inflation rate is .