Macro #7

Table: Population Data for Estill County) Look at the table Population Data for Estill County. How many people are in the labor force?

6,000

the real wage is the nominal wage rate_____ the price level

divided by

all of the following are costs of inflation except_______costs

efficiency wage

the natural rate of unemployment is..

equal to the sum of frictional and structural unemployment

for most of the US modern economic history, when the unemployment rate is______, real GDP is_________

falling;rising

according to official statistics, discouraged workers are..

not included in the labor force

employment is the total..

number of people actively working, either full-time or part-time

the labor force is the total..

number of people who are employed or unemployed.

if money income remains the same while the average price level doubles..

real income will fall

the natural rate of employment is achieved when

there is no cyclical unemployment

if deflation occurs and your income is fixed, your real income..

will go up

Look at the table The Consumer Price Index (CPI). The inflation rate between 2011 and 2012 was..

1.4%

Question 4 Unsaved In 2011, 10 million people did not have a job but were actively looking for employment, and 85 million people had either a full-time or a part-time job. The unemployment rate in 2011 was..

10.5%

If a country has a working-age population of 200 million, 135 million people with jobs, 10 million people who were looking for a job but have given up, and 5 million people unemployed and seeking employment, then its labor force is..

150 million(wrong) 140million?

suppose that the nominal rate of interest is 7% and the inflation rate is 3%. the real rate of interest is:

4%

(Table: Labor Force Data) Look at the table Labor Force Data. Suppose the labor force participation rate is 70%. The number of unemployed adults is..

8 million

deflation is..

a decreasing aggregate price level

To be counted as unemployed, one must..

be out of work and be actively looking for a job during the past four weeks

unemployment that is due to the time workers spend in job search is________ unemployment.

frictional

all of the following cause structural unemployment except..

granting Social Security benefits to laid-off workers

unexpected inflation_______ lenders and_______borrowers

hurts, benefits

A bank makes a loan for one year. The nominal annual interest rate is 7.5%. The real rate is 4%. Over the course of the year, overall prices increase by 4%. This rate of inflation hurt the _____ because the actual rate of inflation was _____ than the anticipated rate

lender; higher

if the actual inflation rate is less than the expected inflation rate..

lenders gain and borrowers lose

Unemployment that results when more people are seeking jobs than there are jobs available is_______unemployment

structural

cyclical unemployment is the result of

the business cycle