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

If the current price of a market basket of goods is $850 and the base year price for the same market basket is $500, what is the value of the price index?

Last year you purchased 20 shirts at $15 apiece, 30 CDs at $12 each, and 5 sweaters at $25 apiece. This year you buy 20 shirts at $20 apiece, 30 CDs at $12 apiece, and 5 sweaters at $20 a apiece. If last year's index was 100, this year's index is

In what ways is the consumer price index flawed?

The official dating of recessions is done by

The largest major change in the U.S. labor force participation rate during the last few decades has been

If a person is fired for poor performance but possesses skills required to obtain another job after some searching, this person is considered

A person who is unemployed because of a mismatch between the person's skills and current employment requirements is experiencing

-Using the above table, the labor force is

If the U.S. economy enters a recession, the

If the nominal interest rate is 4 percent and the anticipated inflation rate is 6 percent, then

Which of the following people would be considered unemployed by the Bureau of Labor Statistics? I. Mrs. X retires from her job and does not look for another job. II. Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months.

The long-run trend in business activity is

An increase in inflation will cause a reduction in which of the following?

Empirical evidence shows that the nominal interest rate typically rises at the same time the inflation rate increases. What does this suggest?

-Refer to the above figure. At Point B, the actual unemployment rate

Which one of the following is TRUE?

The duration of unemployment tends to

The menu cost of inflation involves

Which is the broadest price index reported in the United States?

In the base year the price index