Chapter 5 Econ 102
If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years
10%
The information in the table above gives the 2012 reference base period CPI basket and prices use to construct the CPI for a small nation. It also has the 2013 prices. What is the value of the CPI for 2013?
140
Using the notation Pt to designate this periods price level and Pt-1 to designate last periods price level, the formula for measuring the inflation rate from last period to this period is
[(Pt-Pt-1)/Pt-1] x 100
The unemployment caused by the normal labor turnover is called... unemployment
frictional
The natural unemployment rate
has been estimated to range between 4% and 6% in the United States in recent years
The biases in the CPI are
important since they effect nearly 1/3 of federal government spending
If unemployment equals the natural unemployment rate, then there
is only frictional or structural unemployment
In a period of rapid, unexpected inflation, resources can be lost
when firms use resources to forecast inflation
Inflation is a problem when
all of the above problems are correct
The labor force is defined as the number of people who
are employed plus the number of people who are unemployed
Full employment occurs when?
cyclical unemployment is zero
If the basket of goods and services used to calculate the CPI cost $200 in the reference base period and $450 in a later year, the CPI for the latter year equals
225
In the table above, the number of marginally attached workers is ...?
4 million
Using the information in the above table, the unemployment rate is
4.3%
In the above table, the employment to population ratio is
44%
Using the information in the above table, the labor force participation rate
67.1%
In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part time workers would prefer fulltime work, what is the unemployment rate?
8%
The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered to be a part of the labor force.
A, B, C
Which of the following CORRECTLY describes "frictional unemployment"
Frictional unemployment is a normal occurrence in a growing economy
Suppose that matt quits a job with the XYZ corp. in order to look for more rewarding employment. Matt is best be considered as
Frictionally unemployed
Which of the following best fits the definition of unemployed?
Not working but looking for a job
The biases in the CPI include the
new goods, quality change, and substitution biases
Fictional unemployment is the result of
normal labor market turnover
The labor force is defined as the
number of employed people plus the number of unemployed-people
If the economy is at full employment
real GDP equals potential GDP