Exam 6: Measuring Inflation and Unemployment

Jill has an escalator clause in her labor contract that gives her a raise equal to the change in the consumer price index (CPI). Last year she earned $40,000 and the CPI was 100. If the CPI this year is 110, her new salary is

The mortgage crisis caused a lot of consumers to stop spending money. The decrease in spending led to a decrease in production. Which type of unemployment resulted?

The nonaccelerating inflation rate of unemployment is the unemployment rate associated with ____ inflation and _____ unemployment.

Supply shocks can cause inflation.

If the current year's consumer price index is 214 and last year's consumer price index was 209, then the rate of inflation is

If the cost of a typical market basket in 2019 is 400 and the cost of a typical market basket in 2020 is 390, then during this period the economy is undergoing

Which of these would be included in the consumer price index?

There are 15 million people living in Marketstan, of whom 9 million are working and 1 million are actively looking for work. What is the size of Marketstan's labor force?

Which statement does NOT describe a problem in measuring the consumer price index (CPI)?

(Table) According to the table, real GDP for 2014 is approximately

Nominal GDP in 2006 was $13,458.2 billion. In 2006, the GDP deflator was 116.9. What was the real GDP for 2006 if the GDP deflator uses 2000 as the base year?

Retirees and creditors

The unemployment rate is defined as the number _____ divided by the _____.

The formula for converting a nominal value to real value is: Real = Nominal × (Base Year Index / Current Year Index).

All of these types of wages can cause unemployment EXCEPT

People often resort to bartering for goods and services during periods of hyperinflation because money is virtually worthless.

Zach has been laid off from his job as an aircraft worker. He has been actively looking for a job but has had no luck for the past six weeks. According to the Bureau of Labor Statistics, Zach is

When a high-quality counterfeit bill is circulated, the government ultimately loses.

During a deflationary period, prices will increase at a decreasing rate.

Measuring changes in a fixed basket of goods to assess changes in price is a _____ method.