Exam 6: Measuring Inflation and Unemployment

Suppose that anticipated inflation is 4% for the coming year, with loan contracts set at 7% with the expectation of a 3% return after inflation. If the actual inflation rate at the end of the year is 2%

The consumer price index is a cost-of-living index.

In the United States, people are counted as employed if they have a job but are having child-care problems.

In 2018, the group with the highest unemployment rate in the United States was

Which statement(s) describe(s) the unemployment rate? I. The unemployment rate includes those people who do not have a job and have ended their job search. II) The unemployment rate counts as employed those people who may be only working part-time. III) The unemployment rate is the percentage of the entire U.S. population that does not have a job but is searching for one.

The Bureau of Labor Standards collects a random sample of different goods and services every month in order to achieve statistical uniformity.

The principal measure of inflation in the United States is

Inflation can result from a trade surplus.

From 1999 to 2002, the Japanese inflation rate was, respectively, -0.3%, -0.6%, -0.7%, and -0.7%. During this time, the Japanese economy underwent

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

(Table) The associated table provides a hypothetical bundle of goods and their respective prices for three different years. If 2014 is the base year, the cost of the market basket in 2017 would be

Kyle is working part-time as a bartender while he auditions for his dream job as a member of a ballet company. According to the Bureau of Labor Statistics, Kyle is employed.

If the cost of a typical market basket is 400 in 2018, 410 in 2019, and 415 in 2020, then during this period the economy is undergoing

The nominal value of wages explains how much a consumer can pay for goods and services.

_____ is an overall decline in prices throughout the economy.

Who is hurt by inflation? Who benefits by inflation?

Casey is a 16-year-old high school student who has no marketable skills. He has been browsing the want-ads in the local newspaper for months but finally became so discouraged that he quit looking for a job. According to the Bureau of Labor Statistics, Casey is unemployed.

Which action would reduce frictional unemployment?

The consumer price index is a measure of the changes in the cost of production.

(Table) According to the table, nominal GDP for 2013 is approximately