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

-If 2014 is the base year, what is the price index for a market basket of goods for 2015 in the above table?

-Using the above table, the following is the output of a two-product economy. The price index in this economy in Year 2, assuming Year 1 is the base year, is

Which of the following would be considered a member of the labor force?

Which of the following is TRUE about the labor force?

The population of individuals at least 16 years of age can be broken into 3 groups. They are

The rate of inflation and the purchasing power of money are

A business fluctuation when the pace of economic activity is slowing down is called

Frictional unemployment always exists because

The peak phase of the business cycle represents

Which category of unemployed individuals makes up the greatest share of those who are unemployed?

In 2015, the price for a market basket of consumer goods is $800. In the base year, the cost of the identical market basket was $1,000. The price index in this case is

If there is unemployment and all businesses are operating at less than full capacity, then

A country's labor force is equal to

The term "market basket" means a

-Refer to the above figure. Point B is known as

A person who previously had a full-time job has been paroled from prison and has applied for a job is considered

Official unemployment rates may underestimate the true rate of unemployment because the official rate

The real rate of interest is

In the United States, most often the ________ changes first, and the ________ follows.

A lifeguard who is out of work in the winter is