Exam 14: Unemployment and Inflation

When the price of petrol rises,some consumers begin riding their bikes more frequently or taking public transport instead of driving their cars.The fact that the CPI does not fully account for such changes in consumer behaviour is called

Who might be disadvantaged by deregulation of the labour market? _____________________________________________________________________________________________ _____________________________________________________________________________________________

There is a negative relationship between real interest rates and inflation rates.

Consider a simple economy that produces only three products: hot dogs,torches,and golf balls.Use the information in the following table to calculate the inflation rate for 2017,as measured by the consumer price index. Product Quantity Base Year Price (2009) Price (2017) Price (2018) Hot dogs 10 \ 1.00 \ 1.50 \ 1.75 Torches 15 \ 5.00 \ 7.00 \ 6.75 Golf balls 8 \ 2.00 \ 3.00 \ 3.50 _____________________________________________________________________________________________ _____________________________________________________________________________________________

An 'efficiency wage' is

The 'inflation rate' is measured as the

The unemployment rate rises for a time after a recession is over.

During periods of rising unemployment,the government receives less tax revenue from individuals and from businesses.

The unemployment resulting from workers laid off due to an economic contraction or a recession would be classified as -.

List three different price indices and explain how they differ in terms of the market basket on which they are based. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Which of the following causes the official measure of the unemployment rate to understate the true extent of joblessness?

During times of deflation,borrowers of money can lose,as their debt burden increases.

'Deflation' occurs when the price level becomes negative.

Which of the following is an example of a worker experiencing 'cyclical unemployment'?

In Australia,between 2006 and 2016,

What is the cost to firms of changing prices?

What are 'menu costs'?

The 'producer price index' tracks the prices firms receive for goods and services at all stages of production.

Unemployment benefits reduce the 'opportunity cost' of job search.

If consumers purchase fewer of those products that increase most in price and more of those products that decrease in price as compared to the CPI basket,then changes in the CPI