Macro #2: Unemployment & Inflation

Front

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

Back

Frictional unemployment

Front

Who among the following would be considered as unemployed? A graduating student of legal age to work, An entrepreneur in the process of starting a new business, A secretary who has resigned from work & looking at job ads, A housewife running 2 internet shops at the same time

Back

A secretary who has resigned from work & looking at job ads

Front

When individuals lose jobs due to a decline in the economy (aggregate demand), often during an economic recession.

Back

Cyclical Unemployment

Front

Individuals are unemployed due to a lack in skills that modern industries need, change in technology.

Back

Structural Unemployment

Front

Most countries try to maintain an inflation rate of ______ per year.

Back

Two to three percent

Front

Which of the following is NOT one of the components of Gross Domestic Product (GDP)?
Consumption, Government spending, Investment

Back

Producer Price Index

Front

Which of the following causes of inflation is often described as “too much money chasing too few goods”?
Options: Demand-pull inflation, Cost-push inflation, Demand-push inflation, Cost-pull inflation

Back

Demand-pull inflation

Front

Which of the following is an example of inflation? The price of an iPhone rises as demand increases., The price of a TV remains constant as quality improves., The average price of a laptop decreases as the money supply increases., The average price of groceries increases following an increase in the money supply.

Back

The average price of groceries increases following an increase in the money supply.

Front

When inflation is high the _______________ of the dollar decreases

Back

purchasing power

Front

An index that measures the prices of a market basket of goods that typical consumers purchase.

Back

Consumer Price Index