Chapter 6 - Unemployment and Inflation

Adults

________ have substantially lower unemployment rates than teenagers.

Structural unemployment

________ occurs when the economy evolves.

variety of reasons

Marginally attached workers are individuals who would like to work and have searched for work in the recent past, but have stopped looking for work for a(n) ________.

CPI

The ________ measures changes in prices of a fixed basket of goods- a collection of items chosen to represent the purchasing pattern of a typical consumer.

Real Nominal Principle

________: What matters to people is the real value of money or income- its purchasing power- not the face value of money or income.

Deflation

________ is the negative inflation or falling prices of goods and services.

Labor force

________ participation rate= (________ /participation 16 years and older) x 100 Alternative Measures of Unemployment and Why They are Important.

Inflation

________ refers not to the level of prices, whether they are high or low, but to their percentage change.

Frictional unemployment

________ is the unemployment that occurs naturally during the normal working of an economy.

Labor force

________ participation rate which is the ________ divided by the population 16 years of age and older.

CPI

If the ________ overstates increases in the cost of living, the government and employers might be overpaying Social Security recipients and workers for changes in the cost of living.

unemployment rate

The _____________ is the number of unemployed divided by the total labor force

Labor force

____________ participation rate which is the labor force divided by the population 16 years of age and older.

Anticipated inflation

_____________-: costs associated with fully expected

Unanticipated inflation

____________: costs associated with unexpected

hyperinflation

Indeed, when inflation rates exceed 50 percent per month, we have what is called _____________.

Consumer Price Index

Economists have developed a number of different measures to track the cost of living over time. The best-known measure is the __________________ (CPI).