Exam 8: Unemployment and Inflation

Use the following to answer questions: -(Table: The Consumer Price Index (CPI)) Look at the table The Consumer Price Index (CPI). The inflation rate between 2011 and 2012 was:

In the absence of minimum wages, efficiency wages, or labor unions, a decline in the demand for labor will likely result in _____ if wages are flexible.

The introduction of ATMs reduced the:

The inflation rate for the current year is the percentage change in the price level from the previous year.

Unemployment that occurs because it takes workers and employees time to find each other is _____ unemployment.

Use the following to answer questions : Figure: The Minimum Wage -(Figure: The Minimum Wage) Look at the accompanying figure on the labor market. The binding minimum wage of P₃ leads to unemployment of:

In 2002, the French adopted the euro as their national currency.

During deflation the:

Menu costs refer to the increased cost of:

Natural unemployment equals _____ unemployment plus _____ unemployment.

A survey reveals that on a small island 1,000 people have jobs, 200 people don't have jobs but are looking for jobs, and 200 people are neither working nor looking for work. The unemployment rate on the island is:

A recent college graduate with a major in economics attends a job fair but has not yet found a job. This graduate is counted as a _____ unemployed worker.

If the actual unemployment rate is 7% and the cyclical unemployment rate is 2%, then the natural rate of unemployment is:

In general, for the U.S. economy, the relation between unemployment and economic growth is:

Employment is the total:

The labor supply curve is positively sloped because:

Efficiency wages are:

If a labor market is in equilibrium at a wage that sets the quantity of labor demanded equal to the quantity of labor supplied, how can there still be unemployment?

If the actual unemployment rate is 7% and the natural rate is 5%, then the cyclical rate is:

Use the following to answer questions : Table: Unemployment and Employment Data -(Table: Unemployment and Employment Data) Look at the table Unemployment and Employment Data. The unemployment rate for this economy is: