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

Assume you borrow funds to buy a new car at 10 percent interest and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent. If you are correct in your assumption, your real rate of interest on the car loan will be

Currently, economists estimate that the natural rate of unemployment in the United States is about

When economy-wide business activities are increasing, they are referred to as

Which of the following is true about the labor force?

In a small country, the adult population equals 10,000. In that country, 8,000 people are in the labor force and 200 people are unemployed. The unemployment rate equals

-Refer to the above table. You are given information on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year compute the price index for 2015. The index equals

Full employment means that

Under which one of the following situations would you be better off?

Full employment in the United States today

Which one of the following would benefit financially from unanticipated inflation?

With respect to the interest rate, the inflationary premium

In 2013, the price for a market basket of consumer goods is $1,600. In the base year, the cost of the identical market basket was $1,000. The price index in this case is

The value of your money income, in terms of buying goods and services, is referred to as your money's

A severe and prolonged recession is called

Cyclical unemployment is caused by

If you anticipate that the inflation rate is going to rise from three percent to 10 percent next year , you should

To prevent frictional unemployment, we would have to

According to the text, during which time period did the United States have the highest unemployment rates?

The natural rate of unemployment does NOT include which of the following?

If I voluntarily end my employment, the Bureau of Labor Statistics would consider me to be