Inflation and Unemployment Quiz

The CPI was 238 in one year and 244 the following year. How much did prices rise between these two years?

• 2.46 percent

• 5.50 percent

• 2.52 percent

• 0.03 percent

If the CPI is 100 in the base year and 112 in the current year, how much did prices rise between the base year and the current year?

• 12 percent

• 112 percent

• 1.2 percent

• 0.12 percent

One measure of the inflation rate is the

• sum of the CPIs of adjacent years.

• percentage change in the CPI of adjacent years.

• percentage change in the Real GDP of adjacent years.

• GDP minus the Real GDP in a year.

Suppose that 1983 is the base year for the Consumer Price Index (CPI) and in 2012 the CPI was 226. What does this "226" mean?

• What cost $100 in 1983 on average cost 226 times as much in 2012.

• What cost $100 in 1983 on average cost $226 more in 2012.

• What cost $100 in 1983 on average cost 100/226 (or 0.44) times as much in 2012 (that is, it will cost $22 in 2012).

• What cost $100 in 1983 on average cost $126 more in 2012.

The base year is the year

• in which prices are unstable.

• in which prices are lowest.

• in which prices are highest.

• that serves as a reference point or benchmark.

If a person worked at least 15 hours per week as an "unpaid" worker on a family farm, how is she classified?

• as not in the labor force

• as an unemployed person

• as an employed person

• none of the above

If a person is waiting to be called back to a job from which she has been laid off, how is she classified?

• as not in the labor force

• as an unemployed person

• as an employed person

• none of the above

The unemployment rate equals the

• number of employed persons divided by the number of unemployed persons.

• number of unemployed persons divided by the population.

• number of unemployed persons divided by the labor force.

• sum of unemployed persons and discouraged workers divided by the labor force.

Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing heir transferable skills is called______unemployment

• structural

• cyclical

• natural

• frictional

The unemployment due to changes in the types of skills employers require is called unemployment.

• structural

• cyclical

• natural

• frictional