Exam 5: Monitoring Jobs and Inflation

-The tables above give the purchases of an average consumer in a small economy. (These consumers purchase only loaves of bread and jugs of soda.) Suppose 2015 is the reference base period. a) What quantities are in the CPI basket? b) What is the cost of the CPI basket using 2015 prices? c) What is the cost of the CPI basket using 2016 prices? d) What is the CPI in 2016?

At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year?

-The labor force participation rate is percentage of the ________ who are in the labor force.

Cyclical unemployment

The unemployment rate is calculated as

-The above table shows answers given by people interviewed in a government survey of households. Which individual or individuals are considered marginally attached?

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent. Then cyclical unemployment is

The working-age population is defined as the number of

If the CPI at the end of last year was 100 and the CPI at the end of this year was 115, the inflation rate was

Unemployment caused by changes in technology is called ________ unemployment.

When cyclical unemployment is zero

An article in the Financial Times reports on a trend by college students to take a year off after graduation given the lack of success in finding a job. "In a survey published last month by TMP Worldwide... 54 per cent of the final-year undergraduate interviewees were thinking about taking a gap year and one in 10 was planning to wait for a year to escape the financial chaos and wait for the economy to either improve or for the picture to become clearer." www.ft.com, 10/13/2008 These choices add to the fluctuations seen in the ________ as workers leave the labor force given their unsuccessful job searches.

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate?

The working-age population can be divided into two groups

Hyperinflation is defined as

Suppose there are currently 100 people unemployed, 1,500 people employed, and 2,000 people in the working age population. The labor force participation rate equals 100 times

Suppose the country of Tiny Town experienced frictional unemployment. This frictional unemployment would

In a period of rapid, unexpected inflation, resources can be lost

Which of the following measurements of inflation strips out volatile food and fuel prices?

Which of the following best fits the definition of unemployed?