Exam 5: Monitoring Jobs and Inflation

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

Recessions and expansions affect most strongly which type of unemployment?

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

The economy is at full employment when

Bob inherits a large sum of money from his dead uncle's estate. Bob decides to retire young, so he quits his job and heads to the Bahamas. Bob is an example of

Suppose that over a period of years the country of Quasiland switched from being an agriculturally-based economy to a technologically-based economy. As a result, many people lost jobs because they lacked the correct skills. As they search for new jobs, these people are part of

When the unemployment rate is less than the natural unemployment rate

Give an example of a cyclically unemployed person.

What is a discouraged worker? How do they affect the unemployment rate?

If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was

Cyclical unemployment

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Cyclical unemployment

The employment-to-population ratio is defined as

-Using the information in the above table, the employment-to-population ratio is

If the base year CPI basket costs $250 and next year the CPI basket costs $275, what is next year's CPI?

At the end of last year the Consumer Price Index was equal to 157.5 and at the end of this year it was equal to 163.8. What is the inflation rate over this time period?

Last year's price level was 120 and since then there has been a 5 percent inflation. This year's price level is

Last year the CPI was 177.1 and this year the CPI is 180.9. What was the inflation rate between these two years?

The unemployment rate generally falls during ________ in the business cycle.