Exam 6: Measuring Inflation and Unemployment

Suppose in 2010 the cost of purchasing a basket of goods was $100. That same basket cost $150 in 2011. If 2010 is the base year, the consumer price index for 2011 is

How many hours does a person have to work for pay to be counted as employed?

_____ unemployment is caused by changes in consumer demands or technology.

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

Which of these is a NOT a problem in measuring consumer prices?

For purchasing power to stay the same, wages must

The nonaccelerating inflation rate of unemployment is a measure of the natural rate of inflation.

Hannah is not at work because she broke her leg, but she will return once it heals. She is

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

Inflation has significant long-run effects on the economy because

An economy has a population of 226,500 people, of whom 12,500 are unemployed and actively seeking work, and 35,000 have given up looking for a job. Also, 28,000 people work part-time, and 151,000 people work full-time. This economy's unemployment rate is

The formula for converting the current dollar value to the constant dollar value is

Prices from about _____ goods and services are collected each month by the Bureau of Labor Statistics to be used in calculating the consumer price index.

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

Unemployed workers who voluntarily quit their jobs to search for a better position are categorized as _____ unemployed.

Cyclical unemployment can be mitigated by keeping the economy on a steady, low-inflationary, solid growth path.

(Table) According to the table, what is the unemployment rate of this economy?

The natural rate of employment

Unemployment caused by changes in consumer demographics and automation technology is known as _____ unemployment.

People must be actively engaged in a job search to be considered unemployed.