Inflation and Unemployment

When individuals lose jobs due to a decline in the economy during an economic recession.

• Structural Unemployment

• Cyclical Unemployment

• Frictional Unemployment

• Seasonal Unemployment

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.

Who among the following would be considered as unemployed?

• A college student of legal age to work but who is still in school full time.

• An entrepreneur in the process of starting a new business.

• A secretary who was laid-off from work & is looking at job ads

• A housewife taking care of three children.

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

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

The situation wherein a person who is able and willing to work is unable to find a suitable job is called?

• Unemployment

• Employment

• Full Employment

• Under Employment

When the economy is working properly, what is the unemployment rate?

• 0 to 3 percent

•  4 to 6 percent

• 8 to 10 percent

• 10 to 12 percent

When a company has to pay workers higher wages, it can lead to a rise in prices for their product. This is known as __

• demand pull inflation

• wage price spiral

• cyclical unemployment

• deflation

A general increase in prices is called

• inflation

• purchasing power

• the CPI

• a price index

Inflation reduced people's purchasing power because

• the same amount of money buys ore goods and services

• the same amount of money buys fewer goods and services

• the market basket has to be changed every year

• there is not enough money in the economy