Macro Chapter 6 Homework Problems

Jennifer received news that she is getting a 5% raise. However, the Bureau of Labor Statistics just reported that prices are rising by 7%. Based on the given information, which of the following is true? A. Jennifer is losing purchasing power by 2%. B. Jennifer's purchasing power will rise by 2%. C. Jennifer's purchasing power will rise by 7%. D. Inflation has no impact on purchasing power.

A. Jennifer is losing purchasing power by 2%.

Jennifer did not work during college. She just obtained a bachelor's degree in marketing, and she is now looking for a marketing job in the retail industry. Jennifer is considered: A. frictionally unemployed. B. not in the labor force. C. cyclically unemployed. D. structurally unemployed.

A. frictionally unemployed

When the economy is operating at the natural rate of unemployment: A. the sum of frictional and structural unemployment is zero. B. frictional unemployment is zero. C. cyclical unemployment is zero. D. structural unemployment is zero.

C. cyclical unemployment is zero.

Last year, the consumer price index (CPI) was 115 while the consumer price index for this year is 125. The rate of inflation is: A. 10.8%. B. 9.2%. C. 8%. D. 8.7%.

D. 8.7%

Jordan Meadows lost his job as an airline pilot and has not been able to find another job as a pilot. Since he is old enough to be eligible for his pension, he decides to retire and devote himself to caring for his elderly parents. According to the Bureau of Labor Statistics, Jordan is: A. unemployed. B. employed. C. a discouraged worker. D. not in the labor force.

D. not in the labor force

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: A. cyclical .B. frictional. C. natural. D. structural.

D. structural