Exam 8: Unemployment and Inflation

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 5 old dollars, then a loan of $10,000 would become a debt of _____ new dollars.

Structural unemployment CANNOT be caused by:

When the price level increases, everyone becomes wealthier.

A survey reveals that, on a small island, 40 people have jobs, 10 people are not working but are looking for jobs, and 30 people are neither working nor looking for work. The unemployment rate on the island is _____%.

Use the following to answer questions: -(Table: Unemployment and Employment Data) Use Table: Unemployment and Employment Data. The labor force in this economy is _____ million.

If a country has a working-age population of 200 million, 135 million people with jobs, 10 million people who were looking for a job but have given up, and 5 million people who are unemployed and seeking employment, then its labor force is _____ million.

Counted among the unemployed are underemployed people, who cannot find a job working as many hours as they wish.

The official unemployment rate reported by the government may tend to understate the amount of unemployment because it:

Natural unemployment equals _____ unemployment plus _____ unemployment.

Use the following to answer questions: -(Table: Population Data for Estill County) Use Table: Population Data for Estill County. If marginally attached workers are included, the labor force in Estill County is:

Which example is a LIKELY response to inflation?

Use the following to answer questions: -(Table: Population Data for Estill County)Use Table: Population Data for Estill County. If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is _____%.

Sam, who is 55 years old and has been a steelworker for 30 years, is unemployed because the steel plant in his town closed and moved to Mexico. Sam is _____ unemployed.

The sum of the frictional and structural rates of unemployment is the:

If money income remains the same while the average price level doubles:

Which federal agency calculates and reports the official unemployment rate?

In February 2012, the Bureau of Labor Statistics calculated the unemployment rate to be 8.3%. If frictional unemployment was 3.1% and structural unemployment was 3.2%, then the natural rate of unemployment was:

Use the following to answer questions: -(Figure: The Labor Market) Use Figure: The Labor Market. What will be the level of employment if firms decide to pay an efficiency wage of $16?

Since 1960, the price level in the United States has increased in most years.

The U.S. inflation rate was higher in the 2000s than it was in the 1970s.