Exam 6: Measuring Inflation and Unemployment

Which of these pairs is NOT synonymous?

Governments that run budget deficits benefit from unanticipated inflation.

Dave brags to his dad that his $45,000 starting salary as a computer programmer is much higher than his dad's $28,000 starting salary some years ago. If the consumer price index the year Dave begins work is 180.5 while the consumer price index the year his dad started work was 110.8, Dave is

The consumer price index measures the average change in prices received by domestic producers for their output.

Most economists believe that the consumer price index _____ the rate of inflation.

Underemployed workers have the desire and ability to contribute significantly more to GDP but cannot do so in their present job.

If GDP was $10 trillion in 2001 and the GDP deflator was 100 in 2000 and 110 in 2001, what was real GDP?

The goal of unemployment policy is to eliminate frictional unemployment.

To keep prices steady, the rate of growth of the money supply should

(Table) According to the table, the GDP deflator for 2012 is approximately

A passive job search

Why and how are series of data deflated to a real or constant dollar value?

Compare and contrast the following terms according to the current population survey: employment, unemployment, the labor force, discouraged workers and underemployment.

Since 2008, females have had a higher unemployment rate than males.

The GDP deflator is an index that includes prices of all of these EXCEPT

If the consumer price index says that inflation equaled 10% last year, then the personal consumption expenditures price index is likely to say that inflation equaled 9.7% last year.

An inflation rate of 400% per year would be categorized as hyperinflation.

Suppose there are 630,700 residents in a certain metropolitan area. Of these 630,700 people, 214,400 of them are under 16 years of age, and 38,500 are institutionalized adults. Of the remaining 377,800 residents, 47,900 have given up searching for a job, 15,800 are unemployed and actively seeking work, and 62,820 work part-time. The rest work full time. A) Calculate the unemployment rate for this metropolitan area. Round the percentage to one decimal place. B) If this economy is similar to that of the United States, is this unemployment rate a cause for concern? Support your answer.

Janet is receiving a 5% pay raise. If the rate of inflation is 2%, then Janet's purchasing power is