Exam 5: Monitoring Jobs and Inflation

The primary factor leading to cyclical unemployment is when

The labor force is defined as people

Which of the following pieces of information do you need to calculate the labor force participation rate? I.the number of employed persons II.the number of unemployed persons III.the population IV.the working age population

The unemployment rate measures the percentage of

If this year the price level is 135 and last year it was 125, the inflation rate is

When a worker quits a job to look for a better job

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 2012?

Which labor market statistic tends rise during recessions and fall during expansions?

Explain how the labor force participation rate and the unemployment rate change in a recession.

When an individual is frictionally unemployed, the unemployment arises in part from

The unemployment rate equals

Explain what type of unemployment changes with the business cycle and how it changes.

Andrew just lost his job as a corkscrew operator since his company has found a machine to perform his work tasks. Andrew did not have the skills needed to operate the machine. Andrew has searched for a new job for 6 months and continues to search. Therefore, Andrew is considered to be

To prevent frictional unemployment, we would have to

The working-age population can be divided into two groups

If the economy enters a recession

Price indexes can overstate inflation because they

Assume that after you graduate, you move to a simple economy in which only three goods are produced and consumed: fish, fruit, and meat. Suppose that on January 1, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 per pound, and meat prices had actually fallen to $2.00. Can you say what happened to the overall CPI, in terms of whether it increased, decreased, or stayed the same? Do you have enough information to calculate the inflation rate? Note, this problem requires no calculation; just state and explain your answers.

When an individual who has not been working but has been looking for work decides to terminate the search process, the official unemployment rate

In September 2014, 32 percent of unemployed workers had been unemployed for 6 months or more. This long-term unemployment is of particular concern because