Exam 5: Unemployment and Inflation

Suppose that at the beginning of a loan contract, the real interest rate is 4% and expected inflation is currently 6%.If actual inflation turns out to be 7% over the loan contract period, then

The natural rate of unemployment is made up of

If the price level rose in three consecutive years from 100 to 120 to 140, then the annual inflation rate over those years would

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.The CPI over that year rises from 180 to 200.What is the real interest rate you are paying?

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket, then

In November 2015, the Purchasing Managers' Index (PMI)for Canada 's manufacturing sector was 48.6 while the PMI for Germany was 52.9.Based solely on this data, we would expect

If you have trouble finding a job because of a slowdown in the overall economy, we would say that you are

To obtain real average hourly earnings, nominal average hourly earnings are multiplied by the CPI.

In December 2015, CHCH TV cut 129 full-time positions in its local news division.The laid-off employees who were not able to find jobs at another television news station due to a permanent decline in local news programming would be considered

Which of the following is not a cost posed by inflation?

In the labour force survey, all people are categorized as either employed or unemployed.

If the CPI changes from 125 to 120 between 2010 and 2011, how did prices change between 2010 and 2011?

Which of the following cause the unemployment rate as measured by Statistics Canada to overstate the true extent of joblessness?

Counting part-time workers who are looking for full-time work as employed overstates the degree of joblessness in the economy.

Table 5.7 -Refer to Table 5.7.Consider a simple economy that produces only three products: tacos, earplugs, and toothbrushes.Use the information in the table to calculate the inflation rate for 2014, as measured by the consumer price index.

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called

Which of the following is an example of a worker experiencing cyclical unemployment?

Eliminating all structural unemployment would be good for the economy.

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.The CPI over that year rises from 180 to 190.What is the real rate of interest you will earn?

The real rate of interest is