Exam 5: Monitoring Jobs and Inflation

At the end of last year the Consumer Price Index was equal to 163.8 and at the end of this year it was equal to 157.5. What is the inflation rate over this time period?

The labor force participation rate is

Bob inherits a large sum of money from his dead uncleʹs estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of

Because of the biases in calculating the CPI, actual inflation is

This type of unemployment reflects the normal amount of unemployed workers who possess skills that will enable them to find another job.

Price indexes can overstate inflation because they

Using the official measure of unemployment, which of the following people is considered unemployed?

The table below shows the price index for China starting in 2000. Year Price Index 2000 100.0 2001 100.73 2002 99.95 2003 101.12 2004 105.06 2005 106.95 2006 108.52 Which of the following statements correctly describe the behavior of prices in China?

If the base year CPI basket costs $250 and next year the CPI basket costs $275, what is next yearʹs CPI?

Person A This person has just graduated from high school and is working at a part-time job but wants a full-time job. Person B At the age of 45, this person was laid off from the automobile industry when new equipment wasinstalled and the person did not have the skills necessary to use the equipment. This person now is searching to find a new job. Person C As a result of this person's spouse being transferred to a job in a new city, this person is looking for a new job. Person D This person just graduated from college and is looking for an engineering job. In the meantime, this person is working full-time waiting tables. -The above table shows answers given by people interviewed in the Current Population Survey. Which person is cyclically unemployed?

During a recession, the __________.

Structural unemployment

NPR ʺCertain Green Industries Have Job Openingsʺ, November 12, 2008) reported on a story about wind turbine manufacturers in Ohio having trouble finding skilled workers. The report noted that as a result tens of thousands of people having been laid off, there is ʺa huge pool of job-seekers.ʺ The firms claim toʺoffer good pay and benefits.ʺ A representative from the United Steelworkers claim that their union members have easily transferrable skills, but the pay is too low, around $30,000 annually. A manager at Apollo Alliance says that workers in the new industry need different skills than those in the old steel industry. The type of unemployment described in the story is unemployment.

Category Number (millions) Discouraged workers 15 Unemployed workers 40 Employed workers 100 Population (16 years and over) 225 -In the above table, the labor force participation rate is

Which of the following people would be counted as is employed in the Current Population Survey?

When the economy is at full employment the

Which of the following best fits the definition of unemployed?

Suppose that the unemployment rate equals 4.5 percent and that the natural unemployment rate is 5)5 percent. We can conclude that

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

If the price level for the last three months has been 112, 125, and 126, we would say