Exam 6: Measuring Inflation and Unemployment

Zach has been laid off from his job as an aircraft worker . He has been actively looking for a job but has had no luck for the past six weeks. According to the Bureau of Labor Statistics, Zach is:

Your employer uses an escalator clause to determine your raise each year. In an inflationary environment, your employer is more likely than you are to want to use the chained CPI for urban consumers as the price index in this clause.

A consumer price index of 115 means that prices rose by 15% from the base year.

If the cost of a typical market basket is 400 in 2018, 450 in 2019, and 550 in 2020, then during this period the economy is undergoing:

When the increase in prices goes from 5% to 2%, this is referred to as:

Unemployment rates differ little by education, age, or ethnic group.

Structural unemployment is usually associated with extended periods of unemployment.

Full employment is defined as zero unemployment.

Which of the following is a problem in measuring consumer prices?

During the 1970s, when handheld calculators became popular and replaced slide rules in performing computations, workers in the slide rule industry lost their jobs. These workers' unemployment status is:

(Table) According to the table, the GDP deflator for 2012 is approximately: $\begin{array} { | l | c | r | r | } \hline & \mathbf { 2 0 1 2 } & \mathbf { 2 0 1 3 } & \mathbf { 2 0 1 4 } \\\hline \text { Nominal GDP (billions of \$) } & \$ 2,291 & & \$ 8,511 \\\hline \text { Real GDP (billions of \$) } & \$ 4,500 & \$ 5,865 & \\\hline \text { GDP Deflator } & & 86.1 & 112.7 \\\hline\end{array}$

In 2012, the group with the highest unemployment rate in the United States was:

Which of the following items is NOT included in the GDP deflator?

With everything else held constant, if 5% of those considered to be frictionally unemployed found work while the number of people considered to be structurally unemployed increased by 5%, the natural rate of unemployment:

In the United States, people are not counted as employed if they have a job but are on maternity or paternity leave.

Retirees and creditors:

If a product becomes obsolete and the workers who produced that product will need additional training to find new jobs, then they are experiencing:

People often resort to bartering for goods and services during periods of hyperinflation because money is virtually worthless.

Which of the following people would NOT be considered employed?

If the rate of inflation decreases from 5% to 3%, the economy is undergoing: