Exam 13: Unemployment and Inflation

During the 1990s,Japan experienced periods of deflation and very low nominal interest rates,approaching zero percent.Why would lenders of money agree to a nominal interest rate of almost zero?

The inflation rate measures the percentage increase in the price level from one year to the next.

Suppose 180,000 people are employed,20,000 people are unemployed,the working-age population is 250,000,and 50,000 people are out of the labor force.Calculate the unemployment rate.

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

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.

The real rate of interest is

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

Which of the following explains the changes in the U.S.adult male labor force participation rate since 1948?

Suppose you borrow $1,000 at an interest rate of 12 percent.If the expected real interest rate is 5 percent,then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

Monthly expenditures for a family of 4 in 2012 averaged $1,400.In 2013,the cost of the same purchases was $1,500.If 2012 is the base year,what was the CPI in 2013?

After the recession of 2007-2009,the unemployment rate peaked at 10.0 percent in October 2009.18 months later,it had

In the modern U.S.economy,the typical unemployed person stays unemployed for

Table 13-12 Base Year Product Quantity Price (2001) Price (2012) Price (2013) Burritos 10 \ 1.00 \ 1.50 \ 1.75 Flashlights 15 5.00 7.00 6.75 Golf balls 8 2.00 3.00 3.50 -Refer to Table 13-12.Consider a simple economy that produces only three products: burritos,flashlights,and golf balls.Use the information in the table to calculate the inflation rate for 2013,as measured by the consumer price index.

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat.This lumberjack would be

For the last few decades,the labor force participation rates of men have ________,and the labor force participation rates of women have ________.

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?

Which of the following describes the accuracy of the Consumer Price Index?

The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation,but ________ quality increases.This causes the CPI to ________ the cost of the market basket.

Table 13-21 Year Month Average Retail Price Unleaded Regular Gasoline (centsper gallon) CPI (1982-1984= 100) 1976 June 59.2 56.8 1981 September 137.6 93.2 1994 December 114.3 149.7 2011 October 340.0 226.9 Source: Energy Information Administration -Refer to Table 13-21.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.

If inflation is unanticipated,no redistribution of income can occur.