Exam 9: Unemployment and Inflation

Table 9-8 -Refer to Table 9-8.Suppose that the data in the table above reflect the price levels in the economy.What is the inflation rate in between 2015 and 2016?

Which of the following do not suffer the costs of inflation?

The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price,and the CPI does not reflect this and ________ the cost of the market basket.

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

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?

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.The CPI over that year rises from 180 to 200.What is the real interest rate you are paying?

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

Deflation occurs when

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

Suppose the labor force stays constant,and the working-age population stays constant,but a greater number of persons who were unemployed become employed.The labor force participation rate will

The Bureau of Labor Statistics does not count discouraged workers as unemployed.Suppose discouraged workers were counted as unemployed.Explain how the unemployment rate and the labor force participation rate would change.

The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation,but ________ quality increases.This causes the CPI to ________ the cost of the market basket.

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

If firms pay what are called "efficiency wages," they pay wages that

The nominal interest rate will be less than the real interest rate when

If the CPI changes from 125 to 120 between 2015 and 2016,how did prices change between 2015 and 2016?

The household survey asks adults about their employment status and is used to compile the monthly unemployment rate.

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

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

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.