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

Last year the price of a dozen eggs was $1, and this year the price is $1.30. Which of the following does NOT express this price change accurately?

The inflation rate has been 4 percent for 10 years, and the nominal interest rate has been 8 percent during this same time period. Suddenly, the public anticipates that the inflation rate will be 8 percent this coming year. The real rate of interest for the coming year is

By definition, the purchasing power of money always drops when

The Personal Consumption Expenditure Index (PCE)is a

In the United States, the labor-force participation rate since 1960 has been

The labor force participation rate is the

Cyclical unemployment is

The real interest rate is

Considering the data from the table shown above, assuming that the market basket cost of light bulbs and volleyballs in the base year was $4500, what would be the price index for the year 2015?

Distinguish between a stock and a flow. How do these concepts relate to unemployment?

Examples of external shocks are all of the following EXCEPT

One criticism of the unemployment rate is that it

The unemployment rate will rise when

Frictional unemployment would increase when

The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals

Typically during a recession

The government agency which has been given the task of calculating the Consumer Price Index (CPI)is

If the duration of unemployment increases, what happens to the unemployment rate, other things being equal? Why?

Which of the following people would be considered unemployed?

All of the following are considered to be unemployed EXCEPT