Inflation and Unemployment

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

• Cyclical unemployment

• Technological unemployment

• Frictional unemployment

• Seasonal unemployment

Who does Inflation hurt?

• People with a fixed income

• Savers

• Money Lenders at fixed interest rates

• All of the above

Changes in technology often eliminate one type of job. This represent what type of unemployment?

• Seasonal

• Cyclical

• Frictional

• Structural

What type of inflation is characterized by rising prices due to increased production costs?

• Demand pull inflation

• Cost push inflation

• Structural inflation

• Imported inflation

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.

During which phase of the business cycle is inflation typically at its lowest?

• Expansion

• Peak

• Recession

• Recovery

Farm helpers are unemployed when the cropping season is over.

• frictional

• cyclical

• structural

• seasonal

Inflation is most likely to occur during which phase of the business cycle

• Expansion

• Contraction

Unemployment is most likely to occur during an economic expansion

• True

• False

• 12

• Mr. Bush

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

• Cyclical unemployment

• Technological unemployment

• Frictional unemployment

• Seasonal unemployment