Exam 9: Inflation and Unemployment

Assume that Sharma is temporarily unemployed because he has voluntarily quit his job with Company A and will begin a better job next week with Company B.Sharma is considered to be:

The type of unemployment associated with downturns in the economy is called:

Cost-of-living adjustment clauses (COLAs):

If potential output exceeds actual real output by a wide margin,this implies:

If real GDP in 2007 dollars is $1200 billion and the unemployment rate is 8.0 percent when the natural unemployment rate is presumed to be 6.5 percent,then according to Okun's law how much higher could real GDP have been if the economy were operating at its potential output?

Assuming that the total population is 100 million,the labour force is 50 million,and 3 million workers in the labour force are unemployed,the unemployment rate:

Suppose that there are 1 million part-time workers and 9 million full-time workers in an economy.Then 500,000 of the part-time workers switch to full-time work.We can conclude that the:

Inflation means that:

Which of the following statements is correct?