Exam 6: Measuring Inflation and Unemployment

Structural unemployment is usually associated with extended periods of unemployment.

Describe the methods used for measuring inflation.

(Table) According to the table, the unemployment rate is

Since the invention of automatic teller machines, many bank tellers have lost their jobs. This is an example of _____ unemployment.

Which statement is NOT true?

Disinflation is a decline in overall prices throughout the economy.

Efficiency wages give employees an incentive to work hard and remain with their present employers, but contribute to structural unemployment.

Excessive government spending and printing new money are signs that the economy is in danger of hyperinflation.

_____ unemployment includes workers who voluntarily quit their jobs to search for better positions.

(Table) According to the table, the number of people in the labor force is

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

Suppose the market basket of goods and services cost $3,500 in 1996 but today costs $4,250. Using 1996 as the base year, the consumer price index for today is

The household survey focuses on the payrolls of businesses and government agencies.

What are escalator agreements and contracts?

Scott, who has a PhD in physics, waits on tables for a living. Scott is categorized as

The Weekly Jobs Report is used as a way to estimate trends in layoffs and hiring.

The misery index is the sum of the unemployment rate and the inflation rate.

Full employment is typically defined as the level at which cyclical unemployment is zero or at the level associated with a low, nonaccelerating inflation rate.

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

The Census Bureau surveys households for employment status, while the Department of Labor focuses on the payrolls of businesses and government agencies to determine employment totals.