Unemployment & Inflation

Exam Review

Hasib is on temporary layoff. Is he considered employed? _____.

The adult population = ___ + ____ + _______.

And the labor force = ____ + _____.

• High price levels is an indication of _________.

• Why is inflation considered to be a tax on the poor?

• Why is inflation considered to be a tax on savings??

• How are the “rich” protected against inflation?

• High inflation and high unemployment occurring simultaneously is called __________. (This was the economic condition in the US in the late 1970’s.)

• An increase in the minimum wage will likely lead to a __________ of jobs and a _________ of labor/workers.

• Represent this graphically.

• Unemployment is measured by _________?

• What is the difference between being “jobless” and “unemployed”?

• True or false? A entrepreneur who owns her own company/business is considered to in the labor borce and employed.

Three types of unemployment

• Frictional• Structural• Cyclical

• Which of the 3 is a deviation from the natural rate of unemployment??

• The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least _____ years old.

• What are some of the causes of the changing role of women in American society over the past several decades?________________________________________________________________________

Interest rates & inflation

i = nominal (interest) rater = real (interest )rateπ = inflation

i – π = rExample:

Inflation = 3%Nominal interest rate = 7%

Real interest rate = ?