Exam 13: Unemployment and Inflation

The consumer price index is the

Suppose your grandfather earned a salary of $12,000 in 1964.If the CPI is 31 in 1964 and 219 in 2010,then the value of your grandfather's salary in 2010 dollars is approximately

Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living - the costs of goods and services we buy - without increasing income in general."

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?

Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers;60 have full-time employment;20 have part-time employment;20 do not have employment,but are actively looking for employment;and 10 would like employment but do not have employment and are not actively looking for employment.The official unemployment rate as calculated by the U.S.Bureau of Labor would equal

The natural rate of unemployment consists of frictional unemployment plus structural unemployment.

Table 13-3 -Refer to Table 13-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2006 and 2011 for price and quantity: The Consumer Price Index for 2011 equals

Table 13-11 Source: Energy Information Administration -Refer to Table 13-11.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.

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

If the BLS counted persons that are on active military service in the totals for employment,the labor force,or the working-age population,this would

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

Describe how inflation can be costly even if it is anticipated.

The Bureau of Labor Statistics would categorize a person as ________ if they were temporarily away from their job because they were ill.

Nominal income is equal to real income if the CPI is less than 100.

A central concept in macroeconomics is the idea of the natural rate of unemployment.Why does it make sense to define full employment to occur when the unemployment rate equals the natural rate of unemployment,instead of when the unemployment rate equals zero? Elaborate and explain carefully.

Since 1948,the labor force participation rate for adult men has ________ and for adult women has ________.

Table 13-8 The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010. -Refer to Table 13-8.The real average hourly earnings for 1965 in 1982-1984 dollars equal

If the minimum wage is set above the market wage,

The average period of unemployment was ________ following the 2007-2009 recession as following any other recession since the end of World War II.

The consumer price index implicitly assumes that the demand curve for each good and service in the representative market basket is