Unit 5 Review: Macroeconomics

Inflation can best be defined as...

• A general increase in prices.

• An increase in prices of key items purchased by consumers.

• The increase in the value of fiat money

• The printing of too much paper money.

This type of inflation occurs when an increase in the in production costs are passed on to the consumer.

• Supply Inflation

• Cost Push Inflation

• Imported Inflation

• Demand Pull Inflation

This type of inflation occurs when the demand for products is greater that the supply of products.

• Cost push inflation

• Demand pull inflation

• Divisional inflation

• Structural inflation

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity

Who does Inflation hurt?

• People with a fixed income

• Savers

• Money Lenders at fixed interest rates

• All of the above

_______ occurs when people are in between jobs, entering and reentering the labor force.

• Cyclical unemployment

• Technological unemployment

• Frictional unemployment

• Seasonal unemployment

Farm helpers are unemployed when the cropping season is over.

• frictional

• cyclical

• structural

• seasonal

When individuals lose jobs due to a decline in the economy (aggregate demand), often during an economic recession.

• Structural Unemployment

• Cyclical Unemployment

• Frictional Unemployment

• Seasonal Unemployment

Individuals are unemployed due to a lack in skills that modern industries need, change in technology.

• Cyclical Unemployment

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

There are levels of unemployment. Someone who was looking for work but gave up trying is __

• a high school dropout

• discouraged worker

• underemployed

• a quitter