Chapter 9 Econ Quiz
Consider the following table: Year -Nominal Average Hourly Earnings -CPI 2008 -$16.00 -202 2009 -$17.00 -207 2010 -$18.00 -209 What is the real average hourly wage in 2009? What can be said about real average hourly earnings and nominal average hourly earnings between 2008 and 2010?
$ 8.21 Both real and nominal average hourly earnings increased.
Which of the following formulas does the Bureau of Labor Statistics use to calculate the unemployment rate?
(Number of Unemployed/Number in Labor Force) x 100
When the economy is at full employment,
-all remaining unemployment is either frictional or structural. -the natural rate of unemployment prevails. -the unemployment rate is greater than zero.
Which of the following can give an early warning of future increases in the price level?
Producer Price Index
The true cost of borrowing and lending is best measured by
the real interest rate.
As of April 2017, which of the following demographic groups has the highest unemployment rate?
African Americans
What effect do labor unions have on the unemployment rate?
Since few non-government workers are unionized, there is no significant effect on the unemployment rate.
Indicate whether the following statement is true or false and why. "A wage rising slower than the rate of inflation is actually falling."
True. If wages are increasing slower than the average price of goods and services, purchasing power falls.
