1. 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt Inflation UnemploymentInflationUnemployment

2. Inflation is the general _______ in the price of goods and services in an entire economy over time. Deflation is the general _______ in the price of goods and services in an entire economy over time Increase…. decrease

4. What is an Inflation Premium? A percentage built into a nominal interest rate to anticipate the rate of inflation for the loan period.

6. Real Income = Nominal Income / CPI. What is the formula to find ‘Real Income’?

8. If the CPI rises from 1.0 to 1.08, how much (in percent) would someone’s income have to rise in order to keep constant with inflation. If some one earned 1000 at 1.0 CPI, what would their income have to be at 1.08 CPI in order for it to stay constant with inflation. 8%....$1080

10. It measures price changes for all goods and services produced in the economy, and weights them in terms of the economy’s total output What does the GDP deflator do?

12. Discouraged Workers Unemployed workers who have given up looking for work

14. Underemployement The problem of workers being underutilized

16. Labour Force All people who have a job or are actively seeking employment

18. Full Employment The highest reasonable expectation of employment for the economy as a whole

20. Seasonal A person who works as a snow plow operator during the winter months is _________ unemployment.

22. Consumer Price Index. It Measures price changes for a typical basket of consumer products. What does CPI stand for? And name its use in Economics.

24. What is the Product weight for Hamburgers and Milkshakes? Hamburgers: 0.4 Shakes: 0.6

26. Base year was 1990 If a Survey was done in 1990 and is compared to the year 1992. What is the base year?

28. Consumer Differences, Product Quality, Changes in Spending Patterns Name two Limitations of the CPI.

30. They will have the same amount of purchasing power If someone’s income is proportional to inflation, will they have more or less purchasing power after inflation?

32. Cyclical Unemployment Unemployment due to the ups and downs of economies and businesses

34. Structural Unemployment Unemployment due to the mismatch between people and jobs

36. Full Potential Employment is the real output associated with ______ employment

38. GDP Gap The difference between potential and actual real output associated with full employment

40. Participation Rate The percentage of the entire labour force population that makes up the labour force