Exam 20: Unemployment and Inflation

Which of the following would reduce the labor force participation rate, all else equal?

If the federal government implements programs so that the unemployed are more quickly matched with jobs, then

The unemployment rate is

Labor unions cause unemployment because the union contract wage is set

Monthly expenditures for a family of 4 in 2017 averaged $1,400. In 2018, the cost of the same purchases was $1,500. If 2017 is the base year, what was the CPI in 2018?

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

The advice to "keep searching, there are plenty of jobs around here for which you are qualified," would be most appropriate for which of the following types of unemployment?

Frictional unemployment is the result of

Inflation redistributes income to a greater extent when the inflation is unanticipated compared to when the inflation is anticipated.

Table 20-15 -Refer to Table 20-15. Looking at the table above, real average hourly earnings in 2016 were

Explain how the CPI is constructed.

Table 20-1 Consider the data above for a simple economy. -Refer to Table 20-1. The labor force participation rate for this simple economy equals

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.

Table 20-2 -Refer to Table 20-2. Assume the market basket for the consumer price index has two products-bread and milk-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals

Which of the following is the smallest portion of the market basket of goods that makes up the CPI?

An advantage of the household survey over the establishment survey of the labor market is that the household survey

The costs to firms of changing prices are called menu costs.

Emma is a road construction worker. During the winter months, Emma finds it more difficult to get work. The unemployment Emma experiences in the winter is

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?

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."