Exam 20: Unemployment and Inflation

If the CPI rises from 206.7 to 212.7 between two consecutive years, by how much has the cost of living changed between these two years?

Explain why you would rather be a borrower during a period of unexpected rising inflation, and a lender during a period of unexpected declining inflation.

Most economists believe that labor unions significantly increase the overall unemployment rate in the United States.

If the number employed is 190 million, the working-age population is 230 million, and the number unemployed is 10 million, then the unemployment rate is

Fill in the missing values in the table of data collected in the household survey for December, 1996. The working-age population, employment, unemployment, and labor force are measured in thousands. Show your work.

The Bureau of Labor Statistics would categorize a person as ________ if they were temporarily away from their job because they were ill.

The labor force participation rate is defined as

Table 20-3 -Refer to Table 20-3. Assume the market basket for the consumer price index has three products - Cokes, hamburgers, and CDs - with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Paying efficiency wages are a way for a company to cut costs and become more efficient, and are therefore lower than market wages.

When the actual inflation rate turns out to be greater than the expected inflation rate, who gains - the borrower or the lender - and who loses? Explain why.

If the CPI falls from 142 to 140 between two consecutive years, this implies that prices fell by 2% between those two years.

The natural rate of unemployment consists of frictional unemployment plus structural unemployment.