Question 1

If the CPI was 132.5 at the end of last year and 137.5 at the end of this year,the inflation rate over these two years was

Accepted Answer

A)  3.6 percent. 
B)  3.8 percent. 
C)  5.0 percent. 
D)  None of the above answers is correct. 
A)  3.6 percent. 
B)  3.8 percent. 
C)  5.0 percent. 
D)  None of the above answers is correct.

Question 2

Suppose the working-age population is 220 million,the labor force is 150 million,and the unemployment rate is 10 percent.The number of unemployed people is

Accepted Answer

A)  15 million. 
B)  22 million. 
C)  37 million. 
D)  7 million. 
A)  15 million. 
B)  22 million. 
C)  37 million. 
D)  7 million.

Question 3

In August 2012,the employment-to-population ratio dropped from 58.4 percent to 58.3 percent.This change could have been the result of

Accepted Answer

A)  an increase in the working-age population. 
B)  unemployed workers becoming part-time workers. 
C)  unemployed workers becoming discouraged workers. 
D)  discouraged workers starting to look for jobs again. 
A)  an increase in the working-age population. 
B)  unemployed workers becoming part-time workers. 
C)  unemployed workers becoming discouraged workers. 
D)  discouraged workers starting to look for jobs again.

Question 4

The unemployment rate measures the percentage of

Accepted Answer

A)  people who want full-time jobs, but can't find them. 
B)  the working-age population who can't find a job. 
C)  people in the labor force who can't find a job. 
D)  the working age population that can't find a full-time job. 
A)  people who want full-time jobs, but can't find them. 
B)  the working-age population who can't find a job. 
C)  people in the labor force who can't find a job. 
D)  the working age population that can't find a full-time job.

Question 5

$$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Price index } & \begin{array} { c } 
\text { Inflation rate } \
\text { (percent) }
\end{array} \
\hline 1 & 100 & \
\hline 2 & 117 & \text { A } \
\hline 3 & 125 & \text { B } \
\hline 4 & 120 & \text { C } \
\hline 5 & \mathrm { D } & 8.3 \
\hline 6 & 150 & \text { E } \
\hline
\end{array}$$
-In the table above,what inflation rate belongs in space A?

Accepted Answer

A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  -4.0 percent 
A)  17.0 percent 
B)  6.8 percent 
C)  8.3 percent 
D)  -4.0 percent

Question 6

The natural unemployment rate increased significantly during the 1980s and the 1990s.

Accepted Answer

A) True 
 B)False

Question 7

If the CPI was 121.5 at the end of last year and 138.3 at the end of this year,the inflation rate over these two years was

Accepted Answer

A)  10.2 percent. 
B)  13.8 percent. 
C)  12.2 percent. 
D)  16.8 percent. 
A)  10.2 percent. 
B)  13.8 percent. 
C)  12.2 percent. 
D)  16.8 percent.

Question 8

Explain the difference between frictional and structural unemployment.

Accepted Answer

Frictional unemployment is more short te

Question 9

To calculate the unemployment rate,which of the following are necessary pieces of information?
I. the number of unemployed persons
II. the population
III. the number of people in the labor force
IV. the working age population

Accepted Answer

A)  I, II III and IV 
B)  I and II 
C)  I and III 
D)  I and IV 
A)  I, II III and IV 
B)  I and II 
C)  I and III 
D)  I and IV

Question 10

Which of the following decreases the official U-3 unemployment rate?

Accepted Answer

A)  Workers leave the labor force. 
B)  More women enter the labor force and seek jobs. 
C)  Young people graduate from college and start to look for their first full-time job. 
D)  None of the above because they all increase or do not change the unemployment rate. 
A)  Workers leave the labor force. 
B)  More women enter the labor force and seek jobs. 
C)  Young people graduate from college and start to look for their first full-time job. 
D)  None of the above because they all increase or do not change the unemployment rate.

Question 11

Full employment occurs when the

Accepted Answer

A)  unemployment rate equals the natural unemployment rate. 
B)  structural unemployment rate equals the frictional unemployment rate. 
C)  natural unemployment rate equals the frictional unemployment rate. 
D)  cyclical unemployment rate equals the natural unemployment rate. 
A)  unemployment rate equals the natural unemployment rate. 
B)  structural unemployment rate equals the frictional unemployment rate. 
C)  natural unemployment rate equals the frictional unemployment rate. 
D)  cyclical unemployment rate equals the natural unemployment rate.

Question 12

List and define the three types of unemployment.

Accepted Answer

The three types are frictional,structura

Question 13

Assume that after you graduate,you move to a simple economy in which only three goods are produced and consumed: fish,fruit,and meat.Suppose that on January 1,fish sold for $2.50 per pound,meat was $3.00 per pound,and fruit was $1.50 per pound.At the end of the year,you discover that the catch was low and that fish prices had increased to $5.00 per pound,but fruit prices stayed at $1.50 per pound,and meat prices had actually fallen to $2.00.Can you say what happened to the overall CPI,in terms of whether it increased,decreased,or stayed the same?
Do you have enough information to calculate the inflation rate?
Note,this problem requires no calculation; just state and explain your answers.

Accepted Answer

You cannot say what happened to the CPI

Question 14

Based on the following data for the country of Tiny Town,the unemployment rate equals: Population = 100
Labor force = 80
Number of employed persons = 70
Number of discouraged workers = 5

Accepted Answer

A)  10/100 × 100. 
B)  10/80 × 100. 
C)  15/80 × 100. 
D)  5/70 × 100. 
A)  10/100 × 100. 
B)  10/80 × 100. 
C)  15/80 × 100. 
D)  5/70 × 100.

Question 15

Suppose the working-age population is 150 million,the labor force is 125 million,and employment is 120 million.
a) What is the unemployment rate?
b) Now suppose that 2 million students graduate from college and begin to look for jobs.What is the new unemployment rate if none of the students have found jobs yet?
c) Suppose that all 2 million students find jobs.What is the unemployment rate now?

Accepted Answer

a)The unemployment rate is (5 million un

Question 16

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent.Then cyclical unemployment is

Accepted Answer

A)  1 percent. 
B)  -1 percent. 
C)  8 percent. 
D)  0 percent. 
A)  1 percent. 
B)  -1 percent. 
C)  8 percent. 
D)  0 percent.

Question 17

If the Consumer Price Index last year was 110 and 115 this year,the inflation rate is approximately

Accepted Answer

A)  4.5 percent. 
B)  5.0 percent. 
C)  10.0 percent. 
D)  15.0 percent. 
A)  4.5 percent. 
B)  5.0 percent. 
C)  10.0 percent. 
D)  15.0 percent.

Question 18

Why is there unemployment even when the economy is at "full employment"?

Accepted Answer

There is unemployment even at "full empl

Question 19

If the price level last year was 220 and this year is 250,what is the inflation rate between the two years?

Accepted Answer

A)  30 percent 
B)  13.6 percent 
C)  12.2 percent 
D)  20 percent 
A)  30 percent 
B)  13.6 percent 
C)  12.2 percent 
D)  20 percent

Question 20

The unemployment rate is at the natural unemployment rate when

Accepted Answer

A)  frictional unemployment equals zero. 
B)  structural unemployment equals zero. 
C)  cyclical unemployment equals zero. 
D)  all types of unemployment equal zero. 
A)  frictional unemployment equals zero. 
B)  structural unemployment equals zero. 
C)  cyclical unemployment equals zero. 
D)  all types of unemployment equal zero.

If the CPI was 132.5 at the end of last year and 137.5 at the end of this year,the inflation rate over these two years was

Suppose the working-age population is 220 million,the labor force is 150 million,and the unemployment rate is 10 percent.The number of unemployed people is

In August 2012,the employment-to-population ratio dropped from 58.4 percent to 58.3 percent.This change could have been the result of

The unemployment rate measures the percentage of

Year Price index Inflation rate (percent) 1 100 2 117 A 3 125 B 4 120 C 5 8.3 6 150 E -In the table above,what inflation rate belongs in space A?

The natural unemployment rate increased significantly during the 1980s and the 1990s.

If the CPI was 121.5 at the end of last year and 138.3 at the end of this year,the inflation rate over these two years was

Explain the difference between frictional and structural unemployment.

To calculate the unemployment rate,which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

Which of the following decreases the official U-3 unemployment rate?

Full employment occurs when the

List and define the three types of unemployment.

Based on the following data for the country of Tiny Town,the unemployment rate equals: Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent.Then cyclical unemployment is

If the Consumer Price Index last year was 110 and 115 this year,the inflation rate is approximately

Why is there unemployment even when the economy is at "full employment"?

If the price level last year was 220 and this year is 250,what is the inflation rate between the two years?

The unemployment rate is at the natural unemployment rate when

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 5: Monitoring Jobs and Inflation

If the CPI was 132.5 at the end of last year and 137.5 at the end of this year,the inflation rate over these two years was

Suppose the working-age population is 220 million,the labor force is 150 million,and the unemployment rate is 10 percent.The number of unemployed people is

In August 2012,the employment-to-population ratio dropped from 58.4 percent to 58.3 percent.This change could have been the result of

The unemployment rate measures the percentage of

Year Price index Inflation rate (percent) 1 100 2 117 A 3 125 B 4 120 C 5 8.3 6 150 E -In the table above,what inflation rate belongs in space A?

The natural unemployment rate increased significantly during the 1980s and the 1990s.

If the CPI was 121.5 at the end of last year and 138.3 at the end of this year,the inflation rate over these two years was

Explain the difference between frictional and structural unemployment.

To calculate the unemployment rate,which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

Which of the following decreases the official U-3 unemployment rate?

Full employment occurs when the

List and define the three types of unemployment.

Based on the following data for the country of Tiny Town,the unemployment rate equals: Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

Suppose that the natural unemployment rate is 4.5 percent and the actual unemployment rate is 3.5 percent.Then cyclical unemployment is

If the Consumer Price Index last year was 110 and 115 this year,the inflation rate is approximately

Why is there unemployment even when the economy is at "full employment"?

If the price level last year was 220 and this year is 250,what is the inflation rate between the two years?

The unemployment rate is at the natural unemployment rate when

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters