Exam 5: Monitoring Jobs and Inflation

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An article in the Financial Times reports on a trend by college students to take a year off after graduation given the lack of success in finding a job. "In a survey published last month by TMP Worldwide...54 per cent of the final-year undergraduate interviewees were thinking about taking a gap year and one in 10 was planning to wait for a year to escape the financial chaos and wait for the economy to either improve or for the picture to become clearer." www.ft.com,10/13/2008 These choices add to the fluctuations seen in the ________ as workers leave the labor force given their unsuccessful job searches.

(Multiple Choice)
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The currently used method for calculating the CPI

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Which type of unemployment increases during a recession?

(Multiple Choice)
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Cyclical unemployment is the result of

(Multiple Choice)
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The cost of inflation to society includes

(Multiple Choice)
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Unemployment caused by changes in technology is called ________ unemployment.

(Multiple Choice)
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The primary factor leading to cyclical unemployment is when

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If this year the price level is 135 and last year it was 125,the inflation rate is

(Multiple Choice)
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Unemployment caused by people voluntarily leaving their jobs is classified as

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Year Price level 2008 91 2009 100 2010 110 2011 121 -In the above table,the inflation rate between 2008 and 2009 is approximately

(Multiple Choice)
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ABC news in Australia reported that the average annual wage in 2008 was $13,308. To calculate the real wage rate in Australia,you would need to know

(Multiple Choice)
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In a country with a working-age population of 300 million,230 million workers are employed and 40 million workers are unemployed.What is the labor force participation rate?

(Multiple Choice)
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The unemployment rate measures the percentage of people in the labor force who can't find a job.

(True/False)
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Using the official measure of unemployment,which of the following people is considered unemployed?

(Multiple Choice)
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"The new goods bias puts a downward bias into the CPI and its measure of the inflation rate." Is the previous sentence correct or not? Explain your answer.

(Essay)
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Inflation is a problem when

(Multiple Choice)
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Nicholas does not possess marketable job skills; therefore,he is

(Multiple Choice)
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Frictional unemployment comes about because of

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When a student finishes college and begins looking for work,

(Multiple Choice)
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The labor force is defined as people

(Multiple Choice)
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