Exam 20: Unemployment and Inflation

The base period for CPI calculations is generally 1982-84. In 2005, 50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s. This potential for bias in the CPI is referred to as ________ bias and results in ________.

If inflation is unanticipated, no redistribution of income can occur.

If inflation is completely anticipated,

The broadest measure of the price level that includes all final goods and services is

In 1986, an Apple IIe computer with 65 kilobytes of memory cost around $1,500. Today, a $1,500 iMac computer (also made by Apple) comes with 8 gigabytes of memory. This illustrates the potential for what kind of bias in CPI calculations?

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest?

We say that the economy is at full employment if the unemployment rate is equal to

Discouraged workers are classified by the BLS as

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness?

The equilibrium wage in a local labor market is $6 per hour. If a minimum wage of $8 per hour is imposed, which of the following will occur?

The problem with inflation is that as prices rise, consumers can no longer afford to buy as many goods and services.

You earned $30,000 in 2000, and your salary rose to $80,000 in 2013. If the CPI rose from 82 to 202 between 2000 and 2013, which of the following is true?

The labor force equals the number of people

During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment

Fill in the missing values in the table of data collected in the household survey for November, 2009. The working-age population, employment, unemployment, and labor force are measured in thousands. Show your work.

Which of the following describes a situation in which the person is hurt by inflation?

Which of the following is not a cost posed by inflation?

In 2013, Caterpillar laid off employees. The employees who were laid off due to the business cycle would be considered

The CPI in 2010 was 218, while the CPI in 1980 was 82. If you had $5,000 in 1980, its equivalent purchasing power in 2008 would be $10,850.

To obtain real average hourly earnings, nominal average hourly earnings are multiplied by the CPI.