Unemployment and Inflation

What is the formula of unemployment rate?

• =(labor force/unemployed)

• =(GDP*labor force)

• =(unemployed/labor force)

• none of them

A worker who losses a job at a petroleum refinery because consumers and business firms switch from the use of oil to solar energy is an example of _________________.

• disguised unemployment.

• cyclical unemployment.

• structural unemployment.

• frictional unemployment.

Which is not the type of unemployment?

• frictional

• functional

• cyclical

• structural

Which of the following statement is TRUE perception about Ainur if she has voluntarily quit her job from company Y and she will start working with company Z next month?

• Seasonal unemployment.

• Frictional unemployment.

• Structural unemployment.

• Technological unemployment.

From our discussion, give one example of the people who benefited from inflation

From our discussion, give one example of the people who are hurt from inflation

Anika and Isabella are having a debate about economics. They are trying to figure out what the Consumer Price Index (CPI) is used to measure. Can you help them?

• The wholesale prices of goods

• The average change in prices paid by rural consumers for a market basket of consumer goods and services

• The average change in prices paid by urban consumers for a market basket of consumer goods and services

• The average price of all items in GDP

What are the potential causes of inflation?

• Demand factors, supply shocks, and government policy

• Decreased government spending and tax revenues

• Consumer confidence, income, and wealth

• Price fluctuations on selected items such as coffee or pork

In periods of high inflation,

• people want to hold on to as much money as possible.

• the purchasing power of money is decreasing.

• nobody wants to work and earn income.

• low nominal interest rates are likely to result.

What is included in the calculation of a consumer prices index (CPI)?

• the price of a basket of goods and services

• the price of exports and the price of imports

• the value of the currency on international markets

• the wages of consumers