Exam 20: Unemployment and Inflation

Using a broader measure of the unemployment rate where discouraged workers and part-time workers who wished to work full time were counted as unemployed,the BLS estimates the unemployment rate in September 2011 would have ________ compared to the measured unemployment rate.

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.

The nominal interest rate plus the inflation rate equals the real interest rate.

If inflation is positive and is perfectly anticipated,

Describe how inflation can be costly even if it is anticipated.

The labor force participation rate equals the

Full employment is not considered to be zero unemployment,because

The recession of 2007-2009 and its aftermath had different effects on various sectors of the economy.Which of the following sectors of the U.S.economy had the highest unemployment rate in August 2011,topping 12 percent?

Housing is the largest component of the U.S.CPI market basket.

A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket

If your nominal wage rises faster than the price level,we can say your real wage has ________ and the purchasing power of your income has ________.

Eliminating frictional unemployment would be good for the economy.

Discuss the likely impact of each of the following on the unemployment rate: a.The length of time workers are eligible to receive unemployment insurance payments is cut in half. b.The government passes a law making labor unions illegal. c.The minimum wage is raised by 50 percent. d.The government funds an Internet site where companies can post job openings at no charge.

Suppose the labor force stays constant,and the working-age population stays constant,but a greater number of persons who were unemployed become employed.The labor force participation rate will

The Bureau of Labor Statistics does not count discouraged workers as unemployed.Suppose discouraged workers were counted as unemployed.Explain how the unemployment rate and the labor force participation rate would change.

Unemployment caused by a business cycle recession is called cyclical unemployment.

During the 1990s,Japan experienced periods of deflation and very low nominal interest rates,approaching zero percent.Why would lenders of money agree to a nominal interest rate of almost zero?

If cyclical unemployment is eliminated in the economy,then

If the federal government implements programs so that the unemployed are more quickly matched with jobs,then

Table 20-7 -Refer to Table 20-7.Consider a simple economy that produces only three products: tacos,earplugs,and toothbrushes.Use the information in the table to calculate the inflation rate for 2010,as measured by the consumer price index.