MACRO201 chapter 9
Which of these persons is officially unemployed?
A non-working individual who has looked for a job in the past week
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
When the economy is at full employment, which types of unemployment remain?
Frictional and structural
Of the eight categories in the CPI market basket, which three categories make up more than 75% of the basket?
Housing, transportation, and food
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.
Which of these statements about interest rates and inflation is true?
If there is zero inflation, the nominal interest rate is equal to the real interest rate.
large, firms
In calculating the CPI, the market basket does not include ________ equipment purchased by _______ .
Inflation rate example
Inflation rate = [(CPI1 - CPI0) / CPI0] x 100 = [(225 - 207) / 207] x 100 = 8.696.
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.
Which market basket specifically targets intermediate goods?
The basket used by the producer price index
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 _____________.
Which of these groups is included in the labor force?
The unemployed
frictional and structural
When the economy is at full employment, which types of unemployment remain?
inflation rate
[(CPI1 - CPI0) / CPI0] x 100
Suppose you are available for work but have not looked for a job for at least the last four weeks because you believe that no jobs are available. You would then be counted as __________.
a discouraged worker
In general, __________ have much lower unemployment rates than other individuals with other levels of education.
college graduates
At full employment, __________.
cyclical unemployment is zero
To obtain prices of a representative group of goods and services, the Bureau of Labor Statistics (BLS) conducts a monthly survey of __________ households nationwide on their spending habits. The results of this survey are used to construct a market basket of __________ types of goods and services purchased by the typical urban family of four.
14,000; 211
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.
discouraged worker
available for work but have not looked for a job for at least the last four weeks would be a ____________ ________
The short-term unemployment that arises from workers, in the process of changing jobs, is called __________.
frictional unemployment
In calculating the CPI, the __________.
market basket does not include large equipment purchased by firms
Economic variables that are calculated in current year prices are referred to as __________ variables, while variables that have been corrected to account for the effects of inflation are __________ variables.
nominal, real
