Exam 20: Unemployment and Inflation

The economy has gone into a recession. You have majored in computer science and, because of the recession, have difficulty in finding a job. Should you go back to school and get a second major?

Which of the following would be a consequence of substitution bias in the CPI?

Table 20-9 -Refer to Table 20-9. Suppose that the data in the table above reflect the price levels in the economy. Given that data, we can say that the cost of living rose by ________ between 2012 and 2013?

Frictional unemployment is the result of

Emma is a road construction worker. During the winter months, Emma finds it more difficult to get work. The unemployment Emma experiences in the winter is

Which of the following explains the changes in the U.S. adult male labor force participation rate since 1948?

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat. This lumberjack would be

Figure 20-1 -Refer to Figure 20-1. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the following will occur?

Full employment is not considered to be zero unemployment, because

To understand why someone cannot get a job, it helps to know the three types of unemployment. List the three types of unemployment and explain what causes each type. What advice for finding a job would be appropriate for someone in each type of unemployment?

The percent increase in the CPI from one year to the next is a measure of the

In the United States, the typical person who has lost his or her job finds another one in a few months except during severe recessions.

Table 20-16 -Refer to Table 20-16. Looking at the table above, real wages ________ from 2011 to 2012, and real wages ________ from 2012 to 2013.

Which of the following describes the accuracy of the Consumer Price Index?

Inflation that is ________ than what is expected benefits ________ and hurts ________.

If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would base our measure of inflation on

Which of the following would decrease the unemployment rate?

Table 20-1 Consider the data above for a simple economy. -Refer to Table 20-1. The unemployment rate for this simple economy equals

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

Table 20-14 The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010. -Refer to Table 20-14. The real average hourly earnings for 1965 in 2010 dollars equal