Exam 6: Macroeconomic Measurements Part I Prices and Unemployment

In an economy with a population of 300 million persons, 130 million hold civilian jobs and 8 million are not working but are looking for jobs. The unemployment rate is

In year 1 the CPI is 180, and in year 2 the CPI is 192. From year 1 to year 2, Javier's salary rises from $40,000 to $42,000, and Tom's salary rises from $55,000 to $57,000. Who is "more than keeping up with inflation"?

If Carlos is waiting to be called back to his job from which he has been temporarily laid off, the Bureau of Labor Statistics will classify him as unemployed.

Which of the following statements is true?

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 jobs. The number counted as unemployed is

A(n) __________ is a person who was previously employed, hasn't worked for some time, and is currently reentering the labor force.

Describe the difference between the employment rate and the labor force participation rate (LFPR). Under what circumstance would the two be equal to one another?

Most unemployed persons fall into the category of job loser.

A worker is ​underemployed​ if she is working at a job for which her skills far exceed the requirements for the job.

If Jorge is temporarily absent from his regular job because of an industrial dispute, the Bureau of Labor Statistics will classify him as unemployed.

At the time of Elise's 20 year high school reunion she was earning $50,000 and the CPI was 80. Now that it is time for her to attend her 25 year high school reunion, Elise's income has risen to $80,000 and the CPI is 150. At her 25 year reunion, can Elise rightfully brag that her real income has risen since the last time she saw her former classmates five years ago?

Describe what the unemployment rate and the employment rate measure. If we were to sum the unemployment rate and the employment rate, would that sum be equal to one hundred percent? Explain why or why not.

In many large retail stores, price markdowns are now determined by computer. The "middle managers" who used to make these decisions personally became __________ unemployed.

In year 1 the CPI is 174, and in year 2 the CPI is 185. If Sarah's salary was $49,600 in year 1, what is the minimum salary he must earn in year 2 to "keep up with inflation"?

Persons in the civilian labor force fall into one of two categories: ____________ or ___________.

If the government enacts legislation which allows lenders to lower lending standards, the government indirectly___________ the demand for which leads to _________ house prices.

Suppose there are five goods in the economy, A-E. The current-year quantity of each is 10A, 20B, 30C, 40D, and 50E. Current-year prices are $1 for each unit of A, $2 for each unit of B, $3 for each unit of C, $4 for each unit of D, and $5 for each unit of E. Base-year prices are $1 for each good. Real GDP in the current year equals

The value of the consumer price index (CPI) is always equal to ______________ in the base year.

Exhibit 6-1 -Refer to Exhibit 6-1. Prices rose by __________ percent from Year 4 to Year 5.

When making historical comparison's of one's income, is it better to use real income or nominal income for the basis of your comparison? Explain why one makes a better comparison than the other.