Exam 5: Monitoring Jobs and Inflation

The table below shows Vietnam's price index between 2004 and 2007. From the data, we can conclude that

What is a discouraged worker? How do they affect the unemployment rate?

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer.

-In the above table, the inflation rate between 2008 and 2009 is approximately

The commodity substitution bias is that

Assume that after you graduate, you move to a simple economy in which only three goods are produced and consumed: fish, fruit, and meat. Suppose that on January 1, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 per pound, and meat prices had actually fallen to $2.00. Can you say what happened to the overall CPI, in terms of whether it increased, decreased, or stayed the same? Do you have enough information to calculate the inflation rate? Note, this problem requires no calculation; just state and explain your answers.

Consider the following scenario. Initially the economy has 90 million people working, 10 million people unemployed, and 20 million people not in the labor force. Then prospects for the economy improve. Five million people who previously were not in the labor force now join the 10 million previously unemployed in looking for work. For now, the economy remains with 90 million workers. What happens to the unemployment rate?

-The above table shows answers given by people interviewed in the Current Population Survey. Which people are structurally unemployed?

If a worker is temporarily laid off because the economy is in a recession, frictional unemployment increases.

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

The first step in measuring the CPI is to

The primary factor leading to cyclical unemployment is when

The labor force is the sum of the working- age population and the number of unemployed people.

What are the three stages of constructing the CPI?

Catherine quit her job in order to look for a new one; therefore, she is best considered as

Cyclical unemployment

The total number of people aged 16 years and over who are not institutionalized .

Which of the following people would be considered unemployed?

What is the relationship between the natural unemployment rate, the unemployment rate, potential GDP, and actual GDP?

The largest source of unemployment consists of people who