Exam 21: Monitoring Jobs and Inflation

Use the table below to answer the following questions. Table 21.3.1 Suppose a simple economy produces three goods only. The price and output data for some selected years are shown below. -Refer to Table 21.3.1. The reference base period is 2002. Which one of the following statements is true?

Since 1960, Canadian labour force participation rate has ________ and the unemployment rate has ________.

Commodity substitution bias in the CPI refers to the fact that the CPI

In an expansion, typically

If there is a 5 percent increase in the CPI, then there will most likely be

Jesse just graduated from university, and is looking for her first job. Jesse is

In a recession, typically

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

People end unemployment when they

Which of the following statements is incorrect?

In a country with a working-age population of 20 million, 13 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. The labour force participation rate is

Which one of the following people would be counted as unemployed in Canada?

The labour force is the total number of

Use the table below to answer the following questions. Table 21.2.1 This table shows the answers given by interviewees to the Labour Force Survey. -In Table 21.2.1, which person is frictionally unemployed?

Who of the following would be counted as unemployed in Canada?

The commodity substitution bias is that

Who of the following would be counted as unemployed in Canada?

The fixed basket of Econoland consists of 10 units of A, 20 units of B, and 30 units of C. Current prices are $1 per unit of A, $2 per unit of B, and $3 per unit of C. Base year prices are $1 for each unit of A, B, and C. What is the CPI in the current year?

If the economy is operating at full employment, then

In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate?