Exam 20: Unemployment and Inflation

The unemployment rate in the United States is typically lower than in Western Europe because the United States has tougher requirements for the unemployed to receive government payments.

When prices are rising, which of the following will be true?

When actual inflation is less than expected inflation

The short-term unemployment arising from the process of matching workers with jobs is called

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

Describe how a lender can lose during inflation if the inflation is unanticipated and the loan is a fixed-interest-rate loan. How would a variable-interest-rate loan (one that adjusts over the contract period) eliminate these loses?

In April 2017, the U.S. unemployment rate was highest for

If inflation increases unexpectedly, then

During the month of May, 10 million workers moved from being classified as "unemployed" to being classified as "employed." As a result

You earned $30,000 in 2009, and your salary rose to $80,000 in 2018. If the CPI rose from 82 to 202 between 2009 and 2018, which of the following is true?

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.

Inflation that is ________ than what is expected benefits ________ and hurts ________.

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket, then

The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.

Since 1948, the labor force participation rate for adult men has ________ and for adult women has ________.

Why does the substitution bias cause the consumer price index to overstate inflation and the cost of living? Why does the increase in quality bias cause the consumer price index to overstate inflation and the cost of living?

You agree to lend $1,000 for one year at a nominal interest rate of 10%. You anticipate that inflation will be 4% over that year. If inflation is instead 3% over that year, which of the following is true?

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

What is the difference between the nominal interest rate and the real interest rate?

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?