Exam 13: Unemployment and Inflation

Suppose an economy has only three goods,and the typical family purchases the amounts given in the following table.If 2005 is the base year,then what is the CPI for 2012?

Why might firms pay wages that are above the equilibrium wage in a market?

Long-term unemployment is defined as

Demand-pull inflation is caused by

During the 1990s through to the mid-2000s,the Australian labour market

Structural unemployment would increase when

If the CPI falls from 142 to 140 between two consecutive years,this implies that prices fell by 2 per cent between those two years.

When an economy is at its natural rate of unemployment which of the following will be true?

Does inflation mean that consumers can no longer afford to buy as many goods and services due to the higher prices? Explain.

Explain why you would rather be a borrower during a period of unexpected rising inflation and a lender during a period of unexpected declining inflation.

Which of the following individuals would be most negatively affected by anticipated inflation?

During an economic boom,many employees are asked to work more overtime hours each week.As a result of this

The rate of unemployment in Australia is higher among 15-19-year-olds than 60-64-year-olds.

If inflation increases unexpectedly,then

When the economy is at full employment,everyone who wants a job has a job.

High anticipated inflation will cause

Jack just told his boss that he thinks his boss is an idiot.It is likely that Jack will be experiencing ________ unemployment in the near future.

Explain what economists mean by 'full employment' and why the associated rate of unemployment is not zero.

Which of the following is not an advantage of labour market deregulation?

If the anticipated rate of inflation is 5 per cent and workers agree to a wage increase of 4 per cent,if the anticipated rate occurs,then nominal wages will