Exam 20: Unemployment and Inflation

Table 20-4 -Refer to Table 20-4.Assume the market basket for the consumer price index has two products - meat and potatoes - with the following values in 2006 and 2011 for price and quantity: The Consumer Price Index for 2011 equals

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?

Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest.If the inflation rate was 4%,what was the real interest rate you paid?

A central concept in macroeconomics is the idea of the natural rate of unemployment.Why does it make sense to define full employment to occur when the unemployment rate equals the natural rate of unemployment,instead of when the unemployment rate equals zero? Elaborate and explain carefully.

Since 1948,the labor force participation rate for adult men has ________ and for adult women has ________.

When prices are rising,which of the following will be true?

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?

Which of the following policies would reduce frictional unemployment?

After the recession of 2007-2009,the unemployment rate peaked at 10.1 percent in October 2009.23 months later,it had

The labor force equals the number of people

The labor force participation rates of women have rapidly increased since 1948.

Which of the following is true about the consumer price index?

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

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

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is

An increase in unemployment insurance payments would,in effect,________ the amount of time spent searching for a job,which would increase ________ unemployment.

Table 20-3 -Refer to Table 20-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2006 and 2011 for price and quantity: The Consumer Price Index for 2011 equals

According to the text,economists consider full employment to occur when

Fill in the missing values in the table of data collected in the household survey for November,2009.The working-age population,employment,unemployment,and labor force are measured in thousands.Show your work.

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