Exam 20: Unemployment and Inflation

The Bureau of Labor Statistics counts as employed people who work part-time,but would prefer to work full-time.Suppose the people who had part-time jobs,but wanted full-time jobs,were counted as unemployed.Explain how the unemployment rate and the labor force participation rate would change.

Real interest rates at times have been negative.Why would anyone lending money agree to a negative real interest rate?

The full-employment rate of unemployment is zero.

Suppose you borrow $1,000 at an interest rate of 12 percent.If the expected real interest rate is 5 percent,then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

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

How would the unemployment rate and the labor force participation rate change if discouraged workers were counted as unemployed rather than counted as out of the labor force? Show using the formula for both measurements.

Why does the substitution bias cause the consumer price index to overstate inflation and the cost of living? Why does the increase in quality bias cause the consumer price index to overstate inflation and the cost of living?

The unemployment rate in the United States is typically lower than in Western Europe because the United States has tougher requirements for the unemployed to receive government payments.

During the Great Depression,cyclical unemployment increased as the recession continued.This increase in cyclical unemployment

Suppose that at the beginning of a loan contract,the real interest rate is 4% and expected inflation is currently 6%.If actual inflation turns out to be 7% over the loan contract period,then

The United States has ________ social insurance programs,and generally has a ________ unemployment rate,as compared to Canada and Western Europe.

If the number of unemployed workers is 200 million,and the number in the labor force is 500 million,what is the unemployment rate?

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,what is the labor force participation rate?

What are the three main kinds of unemployment?

Which of the following price indices comes closest to measuring the cost of living of the typical household?

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

Unemployment caused by a business cycle recession is called cyclical unemployment.

The most widely used measure of inflation is based on which of the following price indices?

The nominal interest rate equals the real interest rate ________ the inflation rate.

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,how many workers are in the labor force?