Exam 7: The Macroeconomy: Unemployment, Inflation, and Deflation

When the automobile replaced the horse as the primary means of transportation, the unemployment rate of blacksmiths increased. This was an example of

With respect to the interest rate, the inflationary premium

In sequential order, the four phases of the business cycle are

The labor-force participation rate shows the percentage of

Unemployed U.S. residents who are, in effect, merely searching for work between jobs, are defined as

Suppose the actual inflation rate is less than the anticipated inflation rate. Given this information, we know with certainty that the real rate of interest

-Using the above table, the labor force participation rate is

According to the Bureau of Labor Statistics, if you voluntarily leave your job to search for another job, then you

Structural unemployment results when

An increase in the price of electricity, ceteris paribus, indicates that

With regard to employment status, the adult population is divided into what three groups? How is it determined whether someone is in the labor force or not?

The official unemployment rate may understate the true rate of unemployment because of

Unanticipated inflation benefits

A COLA is

A job leaver is an individual

Economists agree that the structure of the Consumer Price Index has some problems that limit its usefulness as a reliable measure of inflation. What is one of these drawbacks?

The labor force includes individuals who are: I. Employed II. Unemployed III. Discouraged workers

A period of time in which the overall pace of business activity is rising is known as

The natural rate of unemployment when seasonally adjusted includes

For the CPI. the value of the index in the base year