Exam 10: Unemployment and Inflation

Institutionalized adults are not considered to be a part of the labor force by the Bureau of Labor Statistics.

During a period of economic expansion, we would expect increasing levels of employment.

Why do the European countries like France, Germany, Italy and Spain have higher unemployment rates than other industrialized nations?

In the official labor statistics, discouraged workers are:

If the inflation rate for a given year is 5 percent, then $1.00 in the previous year will buy goods worth approximately $0.95 this year.

The table given below lists the average price level in a country for four consecutive years. Table 7.2 Refer to the Table 7.2.How many times more goods and services could be purchased with one dollar in 1992 than in 1995?

The NBER focuses primarily on the value of real GDP while deciding whether an economic contraction is a recession, because it is measured monthly and allows the identification of the month in which business-cycle turning points occur.

Which of the following would tend to increase the natural unemployment rate?

If the average price level in 1991 was 1.20 relative to the base year in 1986, then a dollar in 1991 bought 20 percent more goods and services than a dollar in 1986.

Which of the following statements about frictional unemployment is true?

Which of the following statements about the GDP gap is not true?

Assume you borrow $1, 000 on credit cards at an annual interest rate of 10 percent.If the inflation rate is 12 percent during the year and the debt has to be paid back in 12 months, then:

Which of the following persons would be considered unemployed?

If increases in total spending are not offset by increases in the supply of goods and services, the average price level will rise.Which of the following factors is responsible for this rise?

Which of the following could contribute to cost-push inflation?

Which of the following led to an introduction of a new currency in Argentina in mid 1980s?

Rapid increases in military spending by the federal government without accompanying increases in real output could be a cause of cost-push inflation.

Which of the following is true of seasonal unemployment?

Countries that have policies that encourage unemployment should be expected to have more unemployed workers.

Which of the following signals the start of an expansion?