Exam 20: Unemployment and Inflation

When the price of gasoline rises,some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars.The fact that the CPI does not fully account for such changes in consumer behavior is called

Table 20-15 Year Nominal Average Hourly Earnings CPI 2014 \ 10 100 2015 10 105 2016 12 110 -Refer to Table 20-15.Looking at the table above,real average hourly earnings in 2014 were

If you want to earn a real interest rate of 3% on money you lend,and you expect that inflation will be 2%,what nominal rate of interest will you charge?

What effect does the payment of government unemployment insurance have on the unemployment rate?

In the modern U.S.economy,the typical unemployed person stays unemployed for

Table 20-21 Year Month Average Retail Price Unleaded Regular Gasoline (cents per gallon) CPI ( 1976 June 59.2 56.8 1981 September 137.6 93.2 1994 December 114.3 149.7 2011 October 340.0 226.9 -Refer to Table 20-21.The table above reports the consumer price index and the average U.S.retail price for unleaded regular gasoline for four different periods since 1976.Note that the gasoline prices are in cents per gallon. Calculate the real average retail price of unleaded regular gasoline in 1982-1984 dollars.In which period were gasoline prices the highest in real terms? Also,calculate the real average retail price of unleaded regular gasoline in 2011 dollars.

Table 20-17 Year Nominal Average Hourly Earnings CPI (=) 2014 \ 10 188.9 2015 11 195.3 2016 13 201.6 -Between 2015 and 2016,the CPI of a small nation rose from 182 to 185.If household incomes rose by 3% during that period of time,which of the following is true?

Discouraged workers are

Table 20-23 Year Nominal Minimum Wage CPI (=) 1974 \ 2.00 49.3 2012 7.25 224.9 -Refer to Table 20-23.The table above lists the actual minimum wage and CPI in 1974 and in 2012.Using the above table,calculate the real minimum wage for 1974 and 2012.Calculate the rate of growth of the real minimum wage from 1974 to 2012.Are workers better off in terms of the purchasing power of a dollar in 1974 or 2012? Explain why.

The U.S.unemployment insurance program

During a deflationary period

What is the difference between the nominal interest rate and the real interest rate?

During the month of May,10 million workers moved from being classified as "unemployed" to being classified as "employed." As a result

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labor force.Calculate the labor force participation rate.

Table 20-4 -Refer to Table 20-4.Assume the market basket for the consumer price index has two products-meat and potatoes-with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals

Except for recessions,the duration of unemployment for the typical person lasts

The advice to "keep searching,there are plenty of jobs around here for which you are qualified," would be most appropriate for which of the following types of unemployment?

Workers laid off as a result of a recession suffer

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering

If the employment-population ratio in 2015 was at the same level as it was in 2006,