Exam 20: Unemployment and Inflation

In 2015,JP Morgan Chase announced that it was laying off 5,000 employees.The laid-off employees who were not able to find jobs at another bank due to a permanent decline in demand in the banking industry would be considered

The labor force participation rate equals the

In 1986,an Apple IIe computer with 65 kilobytes of memory cost around $1,500.Today,a $1,500 iMac computer (also made by Apple)comes with 8 gigabytes of memory.This illustrates the potential for what kind of bias in CPI calculations?

Table 20-10 Product Quantity ( Price ( Expenditure ( Price ( Expenditure (on base year quantities) (2016) Computers 1 \ 1,200 \ 1,200 \ 900 \ 900 Books 10 25 250 30 300 Burgers 50 3 150 4 200 Total \ 1, -Refer to Table 20-10.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2011 is the base year,then what is the CPI for 2016?

Using a broader measure of the unemployment rate where discouraged workers and part-time workers who wished to work full time were counted as unemployed,the BLS estimates the unemployment rate in August 2015 would have ________ compared to the measured unemployment rate.

The inflation rate measures the average prices of goods and services in the economy.

By offering training to workers whose firms laid them off because of competition from foreign firms,the federal government is attempting to reduce

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

Table 20-13 Product Quantity Base Year Price (2001) Price (2015) Price (2016) Tacos 5 \ 1.50 \ 2.00 \ 2.25 Earplugs 10 6.00 7.50 7.00 Toothbrushes 3 2.50 3.50 3.50 -Refer to Table 20-13.Consider a simple economy that produces only three products: tacos,earplugs,and toothbrushes.Use the information in the table to calculate the inflation rate for 2016,as measured by the consumer price index.

Why would a firm pay efficiency wages?

The labor force is the sum of

Counting part-time workers who are looking for full-time work as employed overstates the degree of joblessness in the economy.

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?

The deflation of the 1930s impacted the U.S.economy because it led some consumers to ________ and because it ________.

Cyclical unemployment is the result of

Most of the unemployment that occurred during the Great Depression was

Jack just received a promotion at work and now works 50 hours per week instead of 35.As a result,

The consumer price index is the

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness?

The producer price index tracks the prices firms receive for goods and services at all stages of production.