Exam 7: Unemployment and Inflation

If a student borrowed $5,000 at a fixed rate of 8.9 percent to pay for this year's college expenses and the annual inflation rate turns out to be 11 percent, then the student's purchasing power for the year has increased.

The table given below reports the consumer price index in a country for four different years. Table 7.1 Inflation Data Year Consumer Price Index 1976 100.00 1980 110.50 1990 128.50 2003 145.00 -Refer to Table 7.1. By how much did consumer prices rise between 1980 and 2003 (rounded to the first decimal place)?

Scenario 7.1 Of 1,350 people surveyed, 318 are not working. The status of those not working is as follows: 122 full-time students 29 discouraged workers 18 in long-term-care facilities 21 seeking employment and age 16 or older 50 retirees 63 under age 16 15 working in the underground economy and not looking for a "real" job Eight of those working were under 16 years of age. -Refer to Scenario 7.1. According to the data provided, the number officially in the labor force is:

Individuals who are under the age of 16 can sometimes be out of work, but they are still not included among the unemployed.

Which of the following is true of seasonal unemployment?

General trends in the incidence of unemployment across different demographic groups in the United States show which of the following groups to have the lowest unemployment rates in the country?

Which of the following is most likely to occur during recession?

Some economists say that "full employment" exists in an economy when:

The natural rate of unemployment is always more than the actual rate of unemployment because it excludes frictional and seasonal unemployment rates.

During the off season, a fruit picker did not work, so he should be considered:

When inflation is much higher than expected, which of the following is true?

The long-run growth in the economy depends on all of the following, except:

Which of the following is observed in an economy during the contraction phase of the business cycle?

In a business cycle, a peak marks the end of an expansion and the beginning of a recession.

The more difficult it is for a firm to adjust its labor force in the face of economic fluctuation, the more likely the firm is to hire new workers.

The part of a business cycle that follows a peak is the:

Which of the following individuals will not be a part of the U.S. labor force?

Scenario 7.1 Of 1,350 people surveyed, 318 are not working. The status of those not working is as follows: 122 full-time students 29 discouraged workers 18 in long-term-care facilities 21 seeking employment and age 16 or older 50 retirees 63 under age 16 15 working in the underground economy and not looking for a "real" job Eight of those working were under 16 years of age. -Refer to Scenario 7.1. According to the data provided, the official unemployment rate is:

he figure given below represents the business cycle of an economy. Figure 7.1 -Refer to Figure 7.1. The movement from point A to point B in the figure is most likely to be associated with _____.

Variable-rate mortgages decrease the risks associated with unexpected inflation.