Exam 9: Unemployment and Inflation

Table 9-20 Salaries in major league baseball have soared over the last 30 to 40 years.Some of the salary increase is due to inflation.The table above reports the consumer price index and the median nominal salary of the New York Yankees for 1989 and 2009. Source: USA Today Salaries Database,asp.usatoday.com/sports/baseball/salaries/default.aspx -Refer to Table 9-20.Calculate the real median salary of the New York Yankees in both 1982-1984 dollars and 2009 dollars.Calculate the percentage increase in the median salary of the Yankees from 1989 to 2009 in both nominal terms and in real terms.

An advantage of the establishment survey over the household survey of the labor market is that the establishment survey

Describe the three types of unemployment.

Suppose your grandfather earned a salary of $12,000 in 1964.If the CPI is 31 in 1964 and 219 in 2013,then the value of your grandfather's salary in 2013 dollars is approximately

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

Nominal income is equal to real income if the CPI is less than 100.

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

Which of the following is not an example of inflation causing a redistribution of income because the inflation was unanticipated?

Labor unions cause unemployment because the union contract wage is set

What does the PPI measure?

The Bureau of Labor Statistics counts as employed people who work part-time,but would prefer to work full-time.Suppose the people who had part-time jobs,but wanted full-time jobs,were counted as unemployed.Explain how the unemployment rate and the labor force participation rate would change.

A full-time student who is not working is categorized as

The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law.

The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation,but ________ quality increases.This causes the CPI to ________ the cost of the market basket.

The labor force participation rates of men have gradually increased since 1948.

Following the recession of 2007-2009,the employment-population ratio

Frictional unemployment is the result of

If the number employed is 190 million,the working-age population is 230 million,and the number unemployed is 10 million,then the unemployment rate is

Table 9-17 -Refer to Table 9-17.Looking at the table above,real average hourly earnings in 2010 were

Table 9-22 -Refer to Table 9-22.Using the above table,calculate real average hourly earnings for 2011,2012,and 2013.Calculate the rate of growth of real average hourly earnings from 2012 to 2013.