Exam 5: Monitoring Jobs and Inflation

Suppose there are currently 100 people unemployed, 1500 people employed, and 2000 people in the working age population. The labor force participation rate equals 100 times

The unemployment rate measures the percentage of people in the labor force who canʹt find a job.

The ________equals the number of________ .

Using the official measure of unemployment, which of the following would NOT be counted as unemployed?

Which population category equals the sum of employed and unemployed people?

If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP deflator for this period?

Explain the relationship between real GDP and potential GDP and between the unemployment rate and the natural unemployment rate as the economy moves through a business cycle.

If a worker is temporarily laid off because the economy is in a recession,

ABC news in Australia reported that the average annual wage in 2008 was $13,308. To calculate the real wage rate in Australia, you would need to know

Which of the following decreases the official U-3 unemployment rate?

Give an example of a cyclically unemployed person.

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

An article in the Financial Times reports on a trend by college students to take a year off after graduation given the lack of success in finding a job. ʺIn a survey published last month by TMP Worldwide... 54 per cent of the final-year undergraduate interviewees were thinking about taking a gap year and one in 10 was planning to wait for a year to escape the financial chaos and wait for the economy to either improve or for the picture to become clearer.ʺ These choices add to the fluctuations seen in the as workers leave the labor force given their unsuccessful job searches.

Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

An example of the new goods bias in the CPI is the

Total population (millions) Currently employed (millions) Not working and looking for work (millions) Want to work but no longer looking for work (millions) 80 40 2 4 -In the table above, the official U-3 unemployment rate is

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

What are the three stages of constructing the CPI?

If this yearʹs price level exceeds last yearʹs,

If this year the price level is 135 and last year it was 125, the inflation rate is__________