Exam 9: Unemployment and Inflation

Minimum wage laws cause unemployment because the legal minimum wage is set

Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students.This would cause

Your grandfather tells you that he earned $7,000/year in his first job in 1961.You earn $35,000/year in your first job in 2011.You know that average prices have risen steadily since 1961.You earn

Table 20-7 -Refer to Table 20-7.Consider a simple economy that produces only three products: tacos,earplugs,and toothbrushes.Use the information in the table to calculate the inflation rate for 2010,as measured by the consumer price index.

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

If you have trouble finding a job because of a slowdown in the overall economy,we would say that you are

The labor force participation rate equals the

In September 2011,Bank of America laid off 30,000 employees.The laid-off employees who were not able to find jobs at another bank due to a permanent decline in business in the financial industry would be considered

If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level,we would base our measure of inflation on

The average period of unemployment was ________ following the 2007-2009 recession as following any other recession since the end of World War II.

The consumer price index is the

Unemployment caused by a business cycle recession is called cyclical unemployment.

A student who just graduated from college but has not found a job would most likely be

The average price of goods and services in the economy is also known as

An unemployment insurance program has which of the following effects?

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

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."

The unemployment rate equals the number of unemployed divided by the ________,all times 100.

When actual inflation is less than expected inflation,

Eliminating frictional unemployment would be good for the economy.