Exam 5: Monitoring Jobs and Inflation

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

The natural unemployment rate .

-Using the data in the above table, the labor force is

The natural unemployment rate

An individual is structurally unemployed if

When a woman reenters the labor force and looks for a job after spending time at home raising a child,

Suppose the natural unemployment rate equals 6 percent and the current unemployment rate is 8 percent. We can conclude that

Inflation is a problem when

-In the above table, the labor force participation rate is

Explain the difference between frictional and structural unemployment.

-In the table above, the unemployment rate is

Students who leave school in the spring and look for work are one source of .

Suppose the CPI last year is 121 and the CPI this year is 137. The correct method to calculate the inflation rate is

Mike has just been laid off from his construction job because consumers are not purchasing new homes because of the recession. Mike would be considered to be part of

Unpredictable changes in the value of money, which brings about gains and losses, are a consequence of unpredictable changes in

Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially, .

-The above table shows answers given by people interviewed in a government survey of households. Which person is a discouraged worker?

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working- age population is 175 million people. What is the unemployment rate?

How is the unemployment rate calculated? Include in your answer the process by which the U.S. Census Bureau classifies the data it collects in its Current Population Survey.

-The CPI basket contains 400 oranges and 800 pens. In the base year, the price of an orange is $1.00 and the price of a pen is $0.75. This year, urban consumers each buy 300 oranges at $2.00 each and 850 pens at $1.00 each. The CPI this year is .