Exam 5: Monitoring Jobs and Inflation

Suppose that the U.S. population is 275 million. Also assume that the labor force is 135 million and that 130 million people are employed. Calculate the unemployment rate.

Structural unemployment

The table below shows data regarding Germany's labor market. The data show that Germany's employment-to-population ratio is ________ in 2007.

Which population category equals the sum of employed and unemployed people?

Full employment exists when

All people in the working-age population can be divided into

When a person reenters the labor force and looks for a job after spending time at home raising a child

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt is best be considered as

The nation's structural unemployment will increase when

The Consumer Price Index is a measure of the average of the prices paid by ________ for a fixed basket of consumer goods and services.

What is the relationship over the business cycle of potential GDP and real GDP?

Unemployment caused by changes in technology is called ________ unemployment.

Nicholas does not possess marketable job skills; therefore, he is

List the four sources of bias in the CPI and briefly explain them.

Give an example of a cyclically unemployed person.

Consider the following scenario. Initially the economy has 90 million people working, 10 million people unemployed, and 20 million people not in the labor force. Then prospects for the economy improve. Five million people who previously were not in the labor force now join the 10 million previously unemployed in looking for work. For now, the economy remains with 90 million workers. What happens to the unemployment rate?

The natural unemployment rate ________.

Explain the relationship(s)between full employment, cyclical unemployment, the natural unemployment rate, and potential GDP.

Suppose there are 180 million employed people and 20 million unemployed people. a)What is the unemployment rate? b)Suppose that 5 million unemployed people give up their search for jobs and become discouraged workers. What is the new official unemployment rate?

Which of the following best fits the definition of unemployed?