Econs: UNn & Inflation 1/7/24

What is the definition of unemployment?

• A. When a person is actively searching for employment but unable to find work

• B. When a person is working part-time

• C. When a person is retired

• D. When a person is on vacation

Which group of people falls under the Economically Inactive Population?

• A. Retirees and students

• D. People with marketable skills

• C. People under 15 years old

• B. People actively looking for work

What is the formula for calculating the Unemployment Rate?

• D. AD = C + I + G + X-M

• A. UN rate = (UN(nos.)/Labour Force) * 100%

• B. LFPR = (Labour Force(nos) / Pop Aged 15 Yrs & above) * 100%

• C. Real income = Money Income / Price Index / 100

Which type of unemployment is caused by a mismatch of skills between workers and available jobs?

• A. Frictional Unemployment

• B. Structural Unemployment

• C. Cyclical Unemployment

• D. Seasonal Unemployment

What is the key feature of Cyclical Unemployment?

• A. Temporary

• B. Unpredictable & Involuntary

• C. Long-term unemployment

• D. Unemployment due to seasonal changes

What is the main reason for Cost-Push Inflation?

• C. Weakening of a country's exchange rate

• B. Increase in the cost of production

• A. Increase in aggregate demand

• D. Increase in job opportunities

What does the Consumer Price Index (CPI) measure?

• A. Changes in the average prices of consumer goods

• C. Changes in the unemployment rate

• D. Changes in the exchange rate

• B. Changes in the stock market

How is Inflation measured using the CPI?

• A. Inflation rate = (CPI of current year - CPI of previous year) / CPI of base year * 100%

• B. Inflation rate = (CPI of current year - CPI of previous year) / CPI of previous year * 100%

• C. Inflation rate = (CPI of current year) / CPI of previous year * 100%

• D. CPI = (Base year index - Current year index) / Current year index * 100%

What is the consequence of Inflation on Fixed Income Earners?

• A. Real income increases

• D. Real income fluctuates

• B. Real income remains constant

• C. Real income decreases

What is the key feature of Frictional Unemployment?

• D. Unemployment due to seasonal changes

• C. Unpredictable & Involuntary

• B. Temporary

• A. Long-term unemployment