CPI/GDP/UNEMPLOYMENT

The Unemployment rate is calculated as the number of

• unemployed persons divided by number of employed persons
  
• persons in the labour force divided by the number of unemployed
  
• unemployed persons divided by the size of the labour force
  
• employed persons divided by number of unemployed persons
  

The unemployment rate does not account for which two types of people?

• discouraged workers (hidden unemployed) and those employed
• full time carers and those in school
• retirees and those in prison
• discouraged workers (hidden unemployed)  and underemployed

Who is most likely to be hurt by inflation?

• someone who borrowed money
• a retiree on a fixed income
• a business owner
• the U.S. government

The formula for GDP is

• C+X+G+Y
• C-I-G-Xn
• C+I+G+NX
• I+G-Xn-Xi

Mr. Johns is quitting his job as a teacher and moving in Ohio to take a new job in California. He is

• Cyclically unemployed
• Seasonally Unemployed
• Structurally Unemployed
• Frictionally Unemployed

If CPI goes from 100 to 300 and your salary goes from $100,000 to $200,000, what happened to your purchasing power?

• Increase
• Decrease
• No change

How many people are NOT in the Labor Force?
Unemployed (Looking for job) = 20
Retired = 5          Prison = 2
School = 10         Employed = 180
Unemployed (not looking for job) = 20

• 20
• 40
• 37
• 140

If one wanted to know whether there had been inflation or not, the BEST measure to observe would be the

• GDP
• Business cycle
• CPI
• National Dept

What is demand pull inflation?

• a decrease in price due to a decrease in supply
• a rise in price level due to an increase in demand
• a decrease in price due to an increase in supply

What is the size of the Labor Force?
Unemployed (Looking for job) = 20
Retired = 5          Prison = 2
School = 10         Employed = 180
Unemployed (not looking for job) = 20

• 180
• 200
• 220
• 237