Exam 9: Unemployment and Inflation

To understand why someone cannot get a job,it helps to know the three types of unemployment.List the three types of unemployment and explain what causes each type.What advice for finding a job would be appropriate for someone in each type of unemployment?

Table 20-11 Source: Energy Information Administration -Refer to Table 20-11.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.

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

When deflation occurs,

According to the text,economists consider full employment to occur when

The natural rate of unemployment consists of frictional unemployment plus structural unemployment.

Which of the following would be a consequence of substitution bias in the CPI?

Discuss the likely impact of each of the following on the unemployment rate: a.The length of time workers are eligible to receive unemployment insurance payments is cut in half. b.The government passes a law making labor unions illegal. c.The minimum wage is raised by 50 percent. d.The government funds an Internet site where companies can post job openings at no charge.

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest.If the inflation rate was 4%,what was the real interest rate you paid?

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

The inflation rate measures the average prices of goods and services in the economy.

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

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.

Full employment is not considered to be zero unemployment,because

Fill in the missing values in the table of data collected in the household survey for November,2009.The working-age population,employment,unemployment,and labor force are measured in thousands.Show your work.

The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price,and the CPI does not reflect this and ________ the cost of the market basket.

Which of the following statements is true about the U.S.economy?

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 2006 and 2011 for price and quantity: The Consumer Price Index for 2011 equals

Table 20-4 -Refer to Table 20-4.Assume the market basket for the consumer price index has two products - meat and potatoes - with the following values in 2006 and 2011 for price and quantity: The Consumer Price Index for 2011 equals

The natural rate of unemployment is the amount of unemployment