Chapter 9 Macroeconomics
Less; lenders; borrowers
Inflation that is _________ than what is expected benefits ____________ and hurts __________.
Menu costs
The costs to firms of changing prices are called
Employed workers and unemployed workers
The labor force is the sum of...
The percentage of the working-age population in the labor force.
The labor force participation rate is defined as?
a. Consumer Price Index
The most widely used measure of inflation is based on which of the following price indices?
The rate of inflation is negative
The nominal interest rate will be less that the real interest rate when
Nominal interest rate minus the inflation rate
The real rate of interest is?
Frictional unemployment
The short-term unemployment arising from the process fo matching workers with jobs is called?
The percentage of the working-age population that is employed
The unemployment rate is?
The natural rate of unemployment
We say that the economy is at full employment if the unemployment rate is equal to
Structural, frictional, and cyclical
What are the three main kinds of unemployment?
The average of the prices received by producers of goods and services at all stages of the production process
What does the PPI measure?
The real interest rate will be lower than the nominal interest rate.
When prices are rising, which of the following will be true?
The real after-tax payment bondholders receive rises
When the inflation rate falls, which of the following occurs?
Discouraged worker are not counted as unemployed
Which of the following causes the unemployment rate to understate the true extent of joblessness?
Persons whose incomes rise more rapidly than inflation
Which of the following do not suffer the costs of inflation?
Implementing a minimum wage in an economy
Which of the following has a tendency to raise the unemployment rate?
A retired railroad engineer who receives a fixed income payment every month
Which of the following individual would be most negatively affected by anticipated inflation?
-6.1%
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?
Price Parity Index
18. The PPI is?
Not in the labor force
A full-time student who is not working is categorized as
The quantity of labor demanded by firms will fall
Based on the graph of the labor market above, if a minimum wage of $8 per hour is imposed, which of the following will result?
Structural unemployment
By offering training to workers whose firms laid them off because of competition from foreign firms, the federal government is attempting to reduce...
There is a decline in the price level
Deflation occurs when
Out of the labor force
Discouraged workers are classified by the BLS as?
Fallen; risen
For the last few decades, the labor force participation rates of men have _________, and the labor force participation rates of women have __________
Prices decreased by 4%
If the CPI changes from 125 to 120 between 2007 and 2008, how did prices change between 2007 and 2008?
3.5%
If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest?
5%
If the number of employed is 190 million, the working age population is 230 million, and the number unemployed is 10 million, them the unemployment rate is?