Exam 20: Unemployment and Inflation

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, how many workers are in the labor force?

Deflation occurs when

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering

Discouraged workers are

The unemployment rate tends to be higher in the European Union as compared to the United States.

The labor force is the sum of

An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment.

Table 20-15 -Refer to Table 20-15. Looking at the table above, real average hourly earnings were equal to ________ in 2012.

The inflation rate measures the percentage increase in the price level from one year to the next.

You lend $5,000 to a friend for one year at a nominal interest rate of 10%. The CPI over that year rises from 180 to 190. What is the real rate of interest you will earn?

Following the recession of 2007-2009, the employment-population ratio

Which of the following is an example of a worker experiencing frictional unemployment?

The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of $40,000 in 1990, what would be a salary with equivalent purchasing power in 2010?

A central concept in macroeconomics is the idea of the natural rate of unemployment. Why does it make sense to define full employment to occur when the unemployment rate equals the natural rate of unemployment, instead of when the unemployment rate equals zero? Elaborate and explain carefully.

The United States has ________ social insurance programs, and generally has a ________ unemployment rate, as compared to Canada and Western Europe.

Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living - the costs of goods and services we buy - without increasing income in general."

The average price of goods and services in the economy is also known as

A full-time student who is not working is categorized as

Table 20-21 Source: Energy Information Administration -Refer to Table 20-21. The table above reports the consumer price index and the average U.S. retail price for unleaded regular gasoline for four different periods since 1976. Note that the gasoline prices are in cents per gallon. Calculate the real average retail price of unleaded regular gasoline in 1982-1984 dollars. In which period were gasoline prices the highest in real terms? Also, calculate the real average retail price of unleaded regular gasoline in 2011 dollars.

The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.