Exam 7: The Macroeconomy: Unemployment, Inflation, and Deflation

Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000. The current price index is

The trough of a contraction is

Inflation is best defined as

Typically, nominal interest rates and anticipated inflation rates

Business fluctuations

An extremely severe recession is known as a

A person graduates from college, then starts to look for a job. This is an example of

To be counted as unemployed in the United States a person has to be

The Consumer Price Index measures

Which of the following is a TRUE statement?

Assume that there was a 5 percent increase in the price of all goods in 2015; if the base year is 2014, then the price index in 2015 will be

Suppose that last week 100,000 people lost their jobs or quit. We can say that

Lois worked for Champion Auto Retailer and was laid off when car sales fell during a recession with falling incomes. This is an example of

Which of the following would be considered an external shock?

To be officially classified as unemployed, a person must be

When economy-wide business fluctuations are negative, they are referred to as

In a small country, the adult population equals 10,000. In that country, 8,000 people are in the labor force and 200 people are unemployed. The unemployment rate equals

Seasonal unemployment is

Unemployment due to the fact that workers have difficulty in the search for appropriate job offers is

Full employment is