Econ

Arlina got a 5% raise while the rate of inflation was 6%. Arlina's standard of living:

fell by about 1%.

Core inflation is found by removing _________ from the consumer price index.

food and energy

The natural rate of employment:

is the rate at which the actual inflation rate is equal to people's inflationary expectations.

Dave brags to his dad that his $45,000 starting salary as a computer programmer is much higher than his dad's $28,000 starting salary some years ago. If the consumer price index the year Dave begins work is 180.5 and the year his dad started work it was 110.8, Dave is:

mistaken. Adjusting for price changes, his salary is less than his dad's salary.

During the 1970s, when handheld calculators became popular and replaced slide rules in performing computations, workers in the slide rule industry lost their jobs. These workers' unemployment status is:

structural

Since the invention of automatic teller machines, many bank tellers have lost their job. This is an example of ______ unemployment.

structural

Cyclical unemployment occurs when:

the economy slows down and workers are laid off.

Nominal GDP in the first quarter of 2010 was $14,592.3 billion. The GDP deflator was 110.2 in the first quarter of 2010. Real GDP for the first quarter of 2010 was equal to:

$13,241.7 billion.

Use the following to answer question 24: 2012: nominal GDP -$2291 Real GDP $4500 GDP Deflator- none 2013: nominal GDP- none Real GDP-$5865 GDP Deflator-86.1 2014 nominal GDP-$8511 Real GDP- $none GDP Deflator- 112.7 24. (Table) According to the table, nominal GDP for 2013 is approximately:

$5,050 billion.

Last year, Megan's salary was $65,000. The consumer price index increased from 109 to 115. If Megan received a cost-of-living adjustment, what would her salary be?

$68,578

Use the following to answer question 45: 2012: nominal GDP -$7280 Real GDP $7280 GDP Deflator- none 2013: nominal GDP- none Real GDP-$7425 GDP Deflator-103.6 2014 nominal GDP-$8000 Real GDP- $none GDP Deflator- 106.1 45. (Table) According to the table, nominal GDP for 2013 is approximately:

$7,692 billion.

An economy has a population of 226,500. Of them, 12,500 are unemployed and actively seeking work, and 35,000 have given up looking for a job. Also, 28,000 people work part-time, and 151,000 people work full-time. This economy's unemployment rate is _______. (Round the percentage to one decimal place; for example, 0.0436 is 4.4%.)

6.5%

Suppose the market basket of goods and services cost $3,500 in 1996 but today costs $4,250. Using 1996 as the base year, the consumer price index for today is:

121.4.

Which of the following statements does NOT describe a problem in measuring the consumer price index (CPI)?

The CPI quickly includes new products in its baskets.

_____ is an index of the average prices for all goods and services in the economy, the broadest measure of inflation.

The GDP deflator

There are 15 million people living in Marketstan, of whom 9 million are working and 1 million are actively looking for work. What is the size of Marketstan's labor force?

10 million

If the labor force is 20 million and the total employed is 18 million, what is the unemployment rate?

10%

There are 15 million people living in Marketstan, of whom 9 million are working and 1 million are actively looking for work. What is Marketstan's unemployment rate?

10%

The nation of Workovia has a population of 15 million, of whom 10 million are in the labor force and 9 million are working. Workovia's unemployment rate is:

10%.

Which of the following is a problem in measuring consumer prices? A) The consumer price index does not account for product substitution. B) The consumer price index is not easy to adjust to changes in the quality of products. C) It takes time to to include new products in the consumer price index. D) All answer choices are correct.

All answer choices are correct.

Which of the following statements about stopping hyperinflation is NOT correct?

Borrowing from foreign governments must take place.

Which statement about the Weekly Jobs Report is NOT true?

It contains an estimate of the total number of people receiving unemployment benefits.

People who are considered UNEMPLOYED include:

None of those listed is considered unemployed.

_____ unemployment is caused by changes in consumer demands or technology.

Structural

Which is NOT a criticism of the official unemployment rate?

Which is NOT a criticism of the official unemployment rate?

The producer price index contains:

aggregate measures of price changes, organized by stage of processing.

Which of the following is NOT a reason unemployment rates differ so much within the United States?

cultural differences

Which group is helped by inflation?

debtors

From 1999 to 2002, the Japanese inflation rates were, respectively, -0.3%, -0.6%, -0.7%, and -0.7%. During this time, the Japanese economy underwent:

deflation.

Wages set high to discourage employee turnover are called ________ wages.

efficiency

The household survey is a great source of discovering:

entrepreneurial activity.

All of the following types of wages can cause unemployment EXCEPT:

equilibrium wages.

Which of the following items is NOT included in the GDP deflator?

imported mangoes

Full employment:

occurs if cyclical unemployment is zero.

Most economists believe that the consumer price index ______ the rate of inflation.

overstates

The price of feed corn would be included in the:

producer price index.

(Table) According to the table, the number of people in the labor force is: Employed 85 Unemployed seeking work 25 Discouraged workers 15 Unpaid family members working 15-plus hours 5 Retired 10

115

Prices from about ________ goods and services are collected each month by Bureau of Labor Statistics data collectors to be used in calculating the consumer price index.

800,000

Which of the following statements regarding the types of unemployment is TRUE?

Frictional unemployment is generally short-term, whereas structural unemployment is often long-term.

In 2009, a market basket of goods and services cost $100 in Merryland; the same basket cost $200 in Berryland. In 2010, the cost in Merryland was $150 and in Berryland it was $225. Based on that information, which of the following statements is true?

The rate of inflation is four times as large in Merryland as in Berryland.

The mortgage crisis caused a lot of consumers to stop spending money. The decrease in spending led to a decrease in production. Which type of unemployment resulted?

cyclical

All of the following are true for inflation EXCEPT that:

debtors are hurt during inflationary times because the amount they pay creditors back increases.

The GDP deflator is an index that includes prices of all but:

imports

Other things equal, if a recession gets worse, the number of discouraged workers __________, and the number of those in the labor force _____________.

increases; decreases