econ103 chapter 9

unemployed

A non-working individual who has looked for a job in the past week is considered _______________.

cyclical

At full employment, ____________ is zero.

nominal

Economic variables that are calculated in current year prices are referred to as ______________ variables

less

If inflation is anticipated, it costs ______ to society than if unanticipated.

be a problem

If the inflation rate is anticipated, it may not ____ __ ___________.

nominal, real

If there is zero inflation, the _________ interest rate is equal to the _____ interest rate.

large, firms

In calculating the CPI, the market basket does not include ________ equipment purchased by _______ .

housing, transportation and food

Of the eight categories in the CPI market basket, which three categories make up more than 75% of the basket?

unemployment

The "normal or natural" underlying level of unemployment in the economy is the full employment rate of ________________.

natural, real

The ___________ rate of unemployment is the unemployment rate that results when the economy produces the potential level of ______ GDP.

unchanging

The consumer price index (CPI) measures the cost of an ______________ basket of goods and services.

producer price index

The market basket used by the ___________ _______ _______ specifically targets intermediate goods.

all stages

The producer price index tracks the prices firms receive for goods and services at _____ ________ of production.

frictional

The short-term unemployment that arises from workers, in the process of changing jobs, is called _____________.

net debtors

Unanticipated deflation hurts _____ ____________.

structural

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and job requirements is __________.

real

Variables that have been corrected to account for the effects of inflation are _____ variables.

frictional and structural

When the economy is at full employment, which types of unemployment remain?

inflation rate

[(CPI1 - CPI0) / CPI0] x 100

discouraged worker

available for work but have not looked for a job for at least the last four weeks would be a ____________ ________