Exam 8: Unemployment and Inflation

Which of the following events would most likely cause the nominal interest rate to fall?

Which type of unemployment is likely to increase the most in a recession?

The higher the anticipated inflation rate,

People who are not currently employed, but say they want a job, are counted as unemployed only if they

If the nominal interest rate is 6 percent and the inflation rate is 4 percent,

Your cousin recently graduated from Harvard Law School and has not found a job after looking for one last week. She can be described as

If the price level increases by 2 percent each year, the inflation rate is increasing.

The higher you think the inflation rate is likely to be,

Uncertainty about inflation

The problems that inflation creates for society are caused primarily by

Juanita earned a B.S. in engineering and went to work for a defense contractor. When the government cut spending, Juanita and 99 others were laid off. The only other business in the town is growing grapes, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Juanita is experiencing is

Unanticipated inflation penalizes

If a new Ph.D. in philosophy finds work as a taxi driver, but continues to look for a college teaching position, he is counted as being employed.

When workers are over-qualified for their current jobs or can find only part-time work, we say they are

Since World War II, labor force participation rates have

During periods of inflation, all prices increase.

Jacqueline, a brilliant new Ph.D. in economics, has turned down many job offers because she hopes eventually to teach at one of the top ten universities in her field. The type of unemployment she is experiencing is

Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is

Cyclical unemployment results from

If the official unemployment rate increases in January from its December level because the Christmas season is over, we can conclude that __________ unemployment is responsible for the increase.