Exam 6: Macroeconomic Measurements Part I Prices and Unemployment

Look at the following data: The frictional unemployment rate is 2 percent, the structural unemployment rate is 3.5 percent, and the actual unemployment rate is 9.5 percent. The natural unemployment rate is ____________ percent and the cyclical unemployment rate is __________ percent.

If the CPI is 230 in year 1 and 249 in year 2, what is the approximate percentage change in prices between the two years?

Some economists argue that the recent relatively high rate of unemployment has resulted in part from the fact that a part of the workforce has not made the adjustment to new technologies.

The civilian non-institutional population can be broken down into two groups:

In an economy with a population of 100 million persons, 42 million hold civilian jobs and 6 million are not working but are looking for a job. The unemployment rate is

Suppose the market basket consists of 400X, 150Y, and 220Z. Current-year prices are $1.50 for each unit of X, $0.50 for each unit of Y, and $4.60 for each unit of Z. Base-year prices are $1.00 for each unit of X, Y, and Z. Approximately what is the value of the CPI in the current year?

Suppose that in an economy the structural unemployment rate is 1.1 percent, the frictional unemployment rate is 3.3 percent, and the unemployment rate is 3.1 percent. The natural unemployment rate is _________ percent and the cyclical unemployment rate is ___________ percent.

Exhibit 6-2 -Refer to Exhibit 6-2. The unemployment rate in year 2 is

Exhibit 6-2 -Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 2?

Suppose that the price index in 1999 was 170 and your salary was $44,000. Suppose in 2016 the consumer price index will be 290. What salary will you have to earn in 2016 in order to equal your 1999 real income?

The cyclical unemployment rate is defined as the __________ unemployment rates.

In an economy with a population of 100 million persons, 40 million hold civilian jobs and 9 million are not working but are looking for a job. The number of persons in the civilian labor force is

Look at the following data: The structural unemployment rate is 4 percent, the natural unemployment rate is 5 percent, and the cyclical unemployment rate is 3 percent. The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent.

At the time of Kelsey's 20 year high school reunion she was earning $50,000 and the CPI was 120. Now that it is time for her to attend her 30 year high school reunion, Kelsey's income has risen to $97,000 and the CPI is 230. At her 30 year reunion, can Kelsey rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?

If we subtract the number of persons not in the labor force from the civilian noninstitutional population, we get the number of people in the

Structural unemployment results primarily from automation and long-lasting changes in demand.

A plumber who quits his job in Indianapolis and moves to Orlando where additional plumbers are needed is said to be ___________________ unemployed

In order to be classified as unemployed, a person must be not working,

Natural unemployment is caused by frictional and structural factors in the economy.

Suppose that in an economy the structural unemployment rate is 2.1 percent, the frictional unemployment rate is 2.3 percent, and the unemployment rate is 12.1 percent. The natural unemployment rate is _________ percent and the cyclical unemployment rate is ___________ percent.