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

Last month 100 million people were in the labor force with 6 million being unemployed. 200,000 people lost their jobs last month and 300,000 found jobs. Distinguishing between stock measures and flow measures, the flow measures are

The purpose of COLAs is to protect

A recession may be defined as

The business cycle phase that must come before the peak is a(n)

The term "business fluctuations" refers to

All of the following are signals of a recession EXCEPT

The CPI tends to overstate the true inflation rate because

The United States experienced a deep recession between 2007 and 2009. Which type of unemployment would most likely increase during that period of recession?

Unanticipated positive inflation

The statistical measure of the weighted average of prices of goods purchased by a typical individual is called the

Business fluctuations

To be officially classified as unemployed, a person must be

How is inflation related to interest rates?

In computing a price index,

With regard to employment status, the adult population is divided into what three groups? How is it determined whether someone is in the labor force or not?

Is it possible for the unemployment rate to rise at the same time that the number of people working increases?

The real rate of interest is

A price index is the

The menu cost of inflation involves

The nominal rate of interest is