Exam 5: Unemployment and Inflation

The short-term unemployment arising from the process of matching workers with jobs is called

In Canada, the typical person who has lost his or her job finds another one in a few months except during severe recessions.

Which of the following describes a situation in which the person is hurt by inflation?

Table 5.17 -Refer to Table 5.17.Looking at the table above, nominal wages ________ from 2016 to 2017, and real wages ________ from 2016 to 2017.

The natural rate of unemployment consists of frictional unemployment plus structural unemployment.

Table 5.18 -Refer to Table 5.18. Looking at the table above, real hourly earnings between 2016 and 2017 changed by

Structural unemployment is the result of

The CPI is also referred to as

Figure 5.1 Alt text for Figure 5.1: In figure 5.1, a graph of the labour market. Long description for Figure 5.1: The x-axis is labelled, labour (millions of workers).The y-axis is labelled, wage (dollars per hour), ranging from 0 to 28 in increments of 2.2 intersecting lines are shown.A line slopes down from the top left of the quadrant, near the value 24 on the y-axis, to the bottom right corner, near the end of the x-axis.A second line slopes up from the bottom left corner of the quadrant, near the origin, to the top right corner.4 points plotted along the 2 sloping lines, and the point of intersection of the 2 lines, are connected to the corresponding values on the x-axis, and to the values 10, 13 and 16 on the y-axis. -Refer to Figure 5.1.Based on the graph of the labour market above, if a minimum wage is set at $10 per hour, which of the following will occur?

An example of a seasonally unemployed worker would be

Suppose you obtain a fixed rate mortgage during a period of relatively high inflation.During the next ten years, inflation falls.Are you a winner or a loser due to inflation? Explain why.

Discouraged workers are

By offering training to workers whose firms laid them off because of competition from foreign firms, the federal government is attempting to reduce

The problem with inflation is that as prices rise, consumers can no longer afford to buy as many goods and services.

Paying efficiency wages are a way for a company to cut costs and become more efficient, and are therefore lower than market wages.

Which of the following describes the accuracy of the Consumer Price Index?

During a deflationary period,

The producer price index tracks the prices firms receive for goods and services at all stages of production.

Suppose 180,000 people are employed, 20,000 people are unemployed, the working-age population is 250,000, and 50,000 people are out of the labour force.Calculate the unemployment rate.

A consumer price index of 160 in 2017 with a base year of 2002 would mean that the cost of the market basket