\[\begin{array} { | l | l | c | } \hline { \text { Year } } & \text { Price index } & \begin{array} { l } \text { Inflation rate } \\ \text { (percent) } \end{array} \\ \hline 1 & 100 & \\ \hline 2 & 117 & \text { A } \\ \hline 3 & 125 & \text { B } \\ \hline 4 & 120 & \text { C } \\ \hline 5 & \mathrm { D } & 8.3 \\ \hline 6 & 150 & \text { E } \\ \hline \end{array}\] -In the table above, what inflation rate belongs in space B?

A) 17.0 percent B) 8.3 percent C) 6.8 percent D) -4.0 percent A) 17.0 percent B) 8.3 percent C) 6.8 percent D) -4.0 percent

The table below shows the price index for Zimbabwe starting in 2000. \[\begin{array} { | l | l | } \hline \text { Year } & \text { Price Index } \\ \hline 2000 & 100.0 \\ \hline 2001 & 173.4 \\ \hline 2002 & 404.37 \\ \hline 2003 & 1880.5 \\ \hline 2004 & 8462.2 \\ \hline 2005 & 28,586.6 \\ \hline 2006 & 319,222.5 \\ \hline \end{array}\] 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.

A) ii only B) i only C) both i and ii D) neither i nor ii A) ii only B) i only C) both i and ii D) neither i nor ii

$\begin{array}{|l|l|} \hline \text { Category } & \begin{array}{l} \text { Number } \\ \text { (millions) } \end{array} \\\hline \text { Discouraged workers } & 15 \\ \hline \text { Unemployed workers } & 40 \\ \hline \text { Employed workers } & 100 \\ \hline \text { Population (16 years and over) } & 225 \\ \hline \end{array}$ -In the above table, the employment-to-population ratio is

A) 51 percent. B) 44 percent. C) 42 percent. D) 62 percent. A) 51 percent. B) 44 percent. C) 42 percent. D) 62 percent.

Exam 5: Monitoring Jobs and Inflation

ʺThe bias in the CPI distorts private contracts because a future payment that is linked to the CPI will be raised above the true increase in the price level.ʺ Is the previous sentence true or false?

(Essay)

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Question 201

Year Price index Inflation rate (percent) 1 100 2 117 A 3 125 B 4 120 C 5 8.3 6 150 E -In the table above, what inflation rate belongs in space B?

(Multiple Choice)

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Question 202

Which of the following most likely would decrease frictional unemployment?

(Multiple Choice)

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Question 203

If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals

(Multiple Choice)

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Question 204

The cost of inflation to society includes I. the opportunity costs of resources used by people to protect themselves against inflation. II. the diversion of productive resources to forecasting inflation.

(Multiple Choice)

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Question 205

The unemployment rate is found by dividing the number of unemployed people by the

(Multiple Choice)

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Question 206

The table below shows the price index for Zimbabwe starting in 2000. Year Price Index 2000 100.0 2001 173.4 2002 404.37 2003 1880.5 2004 8462.2 2005 28,586.6 2006 319,222.5 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.

(Multiple Choice)

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Question 207

2010 2011 Item Quantity Price Quantity Price Books 10 \ 30 8 \ 50 Pens 20 \ 1 15 \ 2 -In 2010, consumers in Dexter consumed only books and pens. The prices and quantities for 2010 and 2011 are listed in the table above. The reference base period for Dexter?s CPI is 2010. What is the inflation rate in 2011?

(Multiple Choice)

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Question 208

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

(Multiple Choice)

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Question 209

Full employment occurs

(Multiple Choice)

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Question 210

The natural unemployment rate__________

(Multiple Choice)

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Question 211

The unemployment rate equals

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Question 212

Bill is a high-school drop out who lost his job in a fast food restaurant when the economy plunged into a recession. After 8 months, Bill is still looking for work. He is an example of

(Multiple Choice)

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Question 213

To prevent frictional unemployment, we would have to

(Multiple Choice)

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Question 214

Recessions and expansions affect most strongly which type of unemployment?

(Multiple Choice)

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Question 215

Cyclical unemployment

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Question 216

When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off,

(Multiple Choice)

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Question 217

The currently used method for calculating the CPI

(Multiple Choice)

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Question 218

Category Number (millions) Discouraged workers 15 Unemployed workers 40 Employed workers 100 Population (16 years and over) 225 -In the above table, the employment-to-population ratio is

(Multiple Choice)

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Question 219

The percentage of people employed aged 16 years and older divided by the working -age population is known as the

(Multiple Choice)

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Question 220

ʺThe bias in the CPI distorts private contracts because a future payment that is linked to the CPI will be raised above the true increase in the price level.ʺ Is the previous sentence true or false?

Year Price index Inflation rate (percent) 1 100 2 117 A 3 125 B 4 120 C 5 8.3 6 150 E -In the table above, what inflation rate belongs in space B?

Which of the following most likely would decrease frictional unemployment?

If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals

The cost of inflation to society includes I. the opportunity costs of resources used by people to protect themselves against inflation. II. the diversion of productive resources to forecasting inflation.

The unemployment rate is found by dividing the number of unemployed people by the

The technique currently used to calculate the CPI implicitly assumes that over time consumers buy

Full employment occurs

The natural unemployment rate__________

The unemployment rate equals

Bill is a high-school drop out who lost his job in a fast food restaurant when the economy plunged into a recession. After 8 months, Bill is still looking for work. He is an example of

To prevent frictional unemployment, we would have to

Recessions and expansions affect most strongly which type of unemployment?

Cyclical unemployment

When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off,

The currently used method for calculating the CPI

Category Number (millions) Discouraged workers 15 Unemployed workers 40 Employed workers 100 Population (16 years and over) 225 -In the above table, the employment-to-population ratio is

The percentage of people employed aged 16 years and older divided by the working -age population is known as the

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

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