ECON

People are classified as unemployed if they are not currently working at a job and if they made an effort to find a job during the past four weeks. The unemployed workers have not yet found jobs that meet their skill sets and desired wages.

true

Suppose that the consumer price index (CPI) at year-end 2015 was 145 and by year-end 2016 it rose to 160. The inflation rate in 2016 will be

10%

The following table shows data for nominal GDP and the GDP deflator (2010 = 100) in 2013 and 2014 for six major industrial countries. Complete the table by calculating the 2013 and 2014 real GDP of each country measured in 2010 prices. Then calculate the inflation rate between 2013 and 2014 for each country.

15,779.55 16,152.79 1.7% 1,738.67 1,781.97 2.6% 496,327.16 495,569.84 WRONG: 1.7% 1,549.09 1,539.33 1.1% 1,473.74 1,512.10 0.3% 1,642.47 1,690.09 WRONG: 2.6% the UK

The following table shows the nominal salary paid to the president of the United States and data for the consumer price index (CPI) for various years. Presidential Salary CPI Year (Dollars) (2000 = 100) 1920 75,000 11.6 1940 75,000 8.1 1960 100,000 17.2 1980 200,000 47.9 2000 400,000 100.0 2015 400,000 137.6 The president's real salary in the year 2000, measured in the purchasing power of the dollar in 2000 is The real presidential salary was the highest in The president's nominal salary was constant between 1920 and 1940. This means that the real salary

400,000 1940 increased

The following table shows a group-by-group break down for a hypothetical economy. Group Number of people Population (aged 16 and over) 10,000 Labor force 6,000 Not currently working 4,500 Employed full-time 4,000 Employed part-time 1,500 Unemployed 500 Based on the table, labor force participation rate is (Round your answer to the nearest tenth.)

60%

Classify each of the following as employed, unemployed, or not in the labor force: Carson, a 17-year-old, works six hours per week as a delivery person for the local newspaper. West works 70 hours per week as a homemaker for her family of nine. Green was laid off as a carpenter when a construction project was completed. He is looking for work but has been unable to find anything except a job that paid $10 an hour, which he turned down. Brown is not working: she applied for a job at Walmart last week and is awaiting the result of her application.

Employed Not a part of labor force Unemployed Unemployed

The sometimes lengthy job search process that is a result of attempting to match worker skills with those needed for specific job openings is responsible for unemployment.

Frictional

What is full employment?

WRONG : the level of employment at which 100% of the working age population has some kind of job.

High and variable rates of inflation will the risk accompanying long-term contracts and related business decisions.

WRONG :decrease