Exam 4: Measuring the Economy 2: Unemployment and Inflation

Below are various statistics for a hypothetical economy (all figures in millions) -Refer to the information above to answer this question.What is the unemployment rate?

Suppose that actual GDP is $45 billion,cyclical unemployment is 5%.What is potential GDP?

The following information is from a hypothetical economy (all figures are in millions): -Refer to the information above to answer this question.What is the current unemployment rate?

Which of the following is false of frictional unemployment?

-Refer to the information above to answer this question.By how much have prices risen from 2014 to 2018?

Which of the following people is least likely to be hurt by unanticipated inflation?

What is the definition of the unemployment rate?

What is the difference between nominal income and real income?

What is meant by cyclical unemployment?

The following are selected statistics for a given year in a hypothetical economy: -Refer to the information above to answer this question.What is the size of the GDP gap in percentage terms for this economy?

Thompson has lost his job at a Vancouver Island pulp mill which has closed permanently.He is looking for work,but wants to go to college to study electronics and eventually find a job in television engineering.At the moment,what can we say about Thompson's employment status?

Assume that goods X,Y,and Z constitute a "market basket" used to compute a price index and that 2014 is the base year. -Refer to the information above to answer this question.What is the price index in 2017?

-Refer to the information above to answer this question.What is the value of real GDP per capita in 2016?

Classify each of the following cases as frictional,structural,or cyclical unemployment. (a)John graduated from college and is currently looking for a job. (b)A farmer lost his job because the area he lives in was transformed into a highly industrialized zone. (c)Eliot works in the automobile industry in Windsor.He lost his job because cheaper imported cars have poured over the border from Japan. (d)Mrs.Dunkin finished raising her children and decided to look for a job. (e)Elizabeth lost her job because the company she used to work in merged with another company. (f)David,who is a restaurant manager,lost his job because of a recession.

What is the cause of cyclical unemployment?

-Refer to the above information to answer this question.What is the annual inflation rate for 2015?

What is the real rate of interest if the nominal rate of interest is 10 percent and the rate of inflation is 4 percent?

How is real income calculated?

List the three different types of cost-push inflation?

Distinguish between participation rate and unemployment rate.