Exam 7: Unemployment and Inflation

An increase in a person's real wage necessarily means

If Dave loans funds at 2 percent while the inflation rate is 4 percent,his real rate of interest is -2 percent.

Exclusion of which of the following tends to understate the true extent of unemployment in the economy?

Seasonal unemployment results from

A sustained decrease in the price level is known as deflation.

The problems that inflation creates for society are caused primarily by

During periods of high inflation,people want to hold as much money as possible.

The real interest rate can be expressed as the

The metropolitan with the lowest unemployment rate is

A decrease in the interest rate,other things constant,will

If the official unemployment rate increases in March from its February level because of sluggish sales in the auto industry,we can conclude that __________ unemployment is responsible for the increase.

Inflation

Discouraged workers are included in the labor force figures but not in unemployment figures.

Seasonal unemployment refers to unemployment that results from

If the inflation rate is higher than expected,which of the following groups in society would be most likely to gain?

Relative prices describe the terms at which individual goods are exchanged for one another.

Unemployment rates __________ during contractions and __________ during expansions.

Your cousin recently graduated from Harvard Law School and has not found a job after looking for one last week.She can be described as

Exhibit 7-1 -In Exhibit 7-1 the economy is initially facing AD₀ and AS₀.Which of the following best describes the occurance of cost-push deflation?

An occupation with a high unemployment rate is