Exam 6: Measuring Inflation and Unemployment

If the labor force is 20 million and the total employed is 18 million, what is the unemployment rate?

The mortgage crisis caused a lot of consumers to stop spending money. The decrease in spending led to a decrease in production. Which type of unemployment resulted?

The labor force consists of all adults in the United States.

If GDP grows 8% in one year and inflation, measured by the GDP deflator, grows by 6% over the same time period, then the real GDP has increased.

In the United States, our principal measure of inflation is:

Hyperinflation occurs when there is an excess of tax revenues over government spending.

Which statement about chained consumer price index for urban consumers (C-CPI-U) is TRUE?

Dylan quits his job in Topeka, Kansas, and moves to Austin, Texas, to get involved in live music. He is unemployed for three months while he looks for a new job. Dylan is frictionally unemployed.

Arlina got a 5% raise while the rate of inflation was 6%. Arlina's standard of living:

Disinflation is a decline in overall prices throughout the country.

Which of the following is included in the consumer price index?

The existence of discouraged workers tends to cause the official unemployment rate to understate the actual rate.

Which statement about the Weekly Jobs Report is NOT true?

Full employment is considered to be the equivalent of the natural rate of unemployment.

If the cost of a typical market basket is 400 in 2018, 410 in 2019, and 405 in 2020, then during this period the economy is undergoing:

Cyclical unemployment occurs when:

Escalator clauses are important in times of rising inflation because they protect the real value of wages.

(Table) According to the table, nominal GDP for 2013 is approximately: $\begin{array} { | l | c | r | r | } \hline & \mathbf { 2 0 1 2 } & \mathbf { 2 0 1 3 } & \mathbf { 2 0 1 4 } \\\hline \text { Nominal GDP (billions of \$) } & \$ 2,291 & & \$ 8,511 \\\hline \text { Real GDP (billions of \$) } & \$ 4,500 & \$ 5,865 & \\\hline \text { GDP Deflator } & & 86.1 & 112.7 \\\hline\end{array}$

The natural rate of unemployment:

Jordan Meadows lost his job as an airline pilot and has not been able to find another job as a pilot. Since he is old enough to be eligible for his pension, he decides to retire and devote himself to caring for his elderly parents. According to the Bureau of Labor Statistics, Jordan is: