Exam 8: Unemployment and Inflation

Use the following to answer questions : -(Table: Labor Force Distribution) Look at the table Labor Force Distribution. The unemployment rate is:

In February 2012, the Bureau of Labor Statistics calculated the unemployment rate to be 8.3%. If frictional unemployment was 2% and structural unemployment was 3.2%, then cyclical unemployment was:

Unanticipated inflation:

Since the 2007 recession, recent college graduates aged 21 to 23, have had an unemployment rate lower than that of any other age group in the labor force.

Suppose that roughly 8 million people in the United States were actively seeking jobs but had not found them this month, the same number as last month. Suppose that 2 million of the people who were unemployed last month gave up their search this month and stopped looking for work. What will happen to the official unemployment rate this month, all other things unchanged?

To be classified as unemployed, a person must be:

The official unemployment rate is a useful but not altogether accurate measure of joblessness.

In periods of inflation, lenders benefit because the money that they are repaid has more purchasing power than the money they loaned initially.

Use the following to answer questions : Scenario: Employment in Xenia Xenia has 10,000 people. Of this population, 1,000 residents are below age 16, and 2,000 have given up looking for work. Currently, 500 people are unemployed but are actively looking for work; 2,500 work part-time, and the rest are fully employed. -(Scenario: Employment in Xenia) Look at the scenario Employment in Xenia. Suppose some of those who had given up looking for work start looking again. The unemployment rate will:

A high unemployment rate implies a high level of GDP.

Unemployment rates tend to:

An example of structural unemployment is a(n):

The population of discouraged workers causes the:

People who are changing jobs are counted in _____ unemployment.

The inflation rate is the:

Suppose that a country has a progressive income tax code, and taxable income is calculated in nominal terms but the schedule of income tax rates is NOT indexed to inflation. An individual whose income keeps up with inflation over time will pay:

Suppose that Allison has an accounting degree, but she lost her job two months ago when her company merged with another firm. Allison hasn't been able to find another accounting job, so she has taken a part-time job as a sales clerk at a clothing store. The Bureau of Labor Statistics classifies Allison as:

In 1896 presidential candidate William Jennings Bryan wanted the United States to abandon the gold standard and print more money, which would raise the price level and benefit farmers who were deeply in debt.

The Bureau of Labor Services calculates U-6. This measures the:

The use of online banking increases the unit-of-account cost of a high inflation rate.