Exam 5: Monitoring Jobs and Inflation

In an economy, 43 million people are employed, 3 million are unemployed, and 4 million are not in the labor force. What is the employment-to-population ratio?

NPR ("Certain Green Industries Have Job Openings", November 12, 2008)reported on a story about wind turbine manufacturers in Ohio having trouble finding skilled workers. The report noted that as a result tens of thousands of people having been laid off, there is "a huge pool of job-seekers." The firms claim to "offer good pay and benefits." A representative from the United Steelworkers claims that their union members have easily transferrable skills, but the pay is too low, around $30,000 annually. A manager at Apollo Alliance says that workers in the new industry need different skills than those in the old steel industry. The type of unemployment described in the story is ________ unemployment.

In the United States in 1996, the population was 265.5 million and the working age population was 200.6 million. There were 133.9 million people in the labor force and 126.7 of them were employed. The unemployment rate equaled ________.

Inflation in Vietnam rose to 27 percent in July 2008-the highest inflation rate in Asia. "Squeezed on all sides, people are cutting back on food, limiting travel, looking for second jobs, delaying major purchases and waiting for the cost of a wedding to go down before marrying...Given this slowdown, Vietnam... is scaling back its plans for growth and economic development. ... Some are losing confidence in the ability of the government to manage the economy. And rumors of price increases have caused panic buying of fuel and rice." Www)nytimes.com, 8/23/2008 The story provides an example of how inflation

The natural unemployment rate I.occurs when only there is no cyclical unemployment present. II.is the unemployment rate when the economy is at potential GDP.

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

-Based on the information in the above table, what is the unemployment rate? What is the labor force participation rate?

Which statement CORRRECTLY describes "structural unemployment"?

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

The unemployment rate equals

The natural unemployment rate is the unemployment rate that exists when there is no

-In the table above, what inflation rate belongs in space C?

-The above table shows answers given by people interviewed in a government survey of households. Which individual or individuals are considered marginally attached?

2012 2013 -In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the cost of the CPI basket in 2013?

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed, and 150 million employed, the employment-to-population rate is

Last year the CPI was 177.1 and this year the CPI is 180.9. What was the inflation rate between these two years?

Last year's price level was 120 and since then there has been a 5 percent inflation. This year's price level is

-Using the information in the table above, calculate the unemployment rate.

The employment-to-population ratio is equal to the number of

The relationship between the unemployment rate and the natural unemployment rate is that the unemployment rate