Exam 5: Monitoring Jobs and Inflation

If the number of people unemployed is 100, the number of people employed is 1,000, and the working-age population is 1,400, then the labor force participation rate is

If the economy enters a recession

If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP deflator for this period?

Looking at inflation rates in the United States since the 1970s we see that

An increase in the price level is defined as

In an economy, 40 million people are employed, 2 million are unemployed, and 8 million are not in the labor force. What is the labor force participation rate?

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

In September 2012 the U.S. unemployment rate was 7.8 percent while the natural unemployment rate was 6 percent. The U.S. economy

The natural unemployment rate

If the economy enters an expansion

What is the commodity substitution bias? What effect does it have on the CPI?

Which type of unemployment increases during a recession?

-In the above table, the employment-to-population ratio is

From 1980 to 2000 the labor force participation rate generally ________ and from 2000 to 2015 the rate generally ________.

In the United States in 1996, the population was 265.5 million and the working age population was 200.6 million. There were 133.9 million people in the labor force and 126.7 of them were employed. The unemployment rate equaled

-In 2016, consumers in Dexter consumed only books and pens. The prices and quantities for 2016 and 2017 are listed in the table above. The reference base period for Dexter's CPI is 2016. What is the inflation rate in 2017?

Assume that after you graduate, you move to a simple economy in which only three goods are produced and consumed: fish, fruit, and meat. Suppose that on January 1, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 per pound, and meat prices had actually fallen to $2.00. Can you say what happened to the overall CPI, in terms of whether it increased, decreased, or stayed the same? Do you have enough information to calculate the inflation rate? Note, this problem requires no calculation; just state and explain your answers.

The natural unemployment rate I. occurs when only there is no cyclical unemployment present. II. is the unemployment rate when the economy is at potential GDP.

-In the table above, the official U-3 unemployment rate is

In September 2014, the labor force participation rate fell from 62.8 percent to 62.7 percent. This change could have been caused by