2. Why would an unemployed person work a job for no pay? What is a product or service everyone uses?

3. Today I will be able to analyze inflation and unemployment in the United States by constructing a short response.

4. Measures changes in prices over time Consumer Price Index 364 goods and services- The Basket What’s a good product or service for the CPI? Base years- 1982-1984

5. * FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)

6. * FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks) * HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)

7. * FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks) * HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture) * APPAREL (men's shirts and sweaters, women's dresses, jewelry)

8. * FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks) * HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture) * APPAREL (men's shirts and sweaters, women's dresses, jewelry) * TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)

9. * FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks) * HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture) * APPAREL (men's shirts and sweaters, women's dresses, jewelry) * TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance) * MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services) *

10. * FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks) * HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture) * APPAREL (men's shirts and sweaters, women's dresses, jewelry) * TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance) * MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services) * RECREATION (televisions, toys, pets and pet products, sports equipment, admissions); *

11. * FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks) * HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture) * APPAREL (men's shirts and sweaters, women's dresses, jewelry) * TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance) * MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services) * RECREATION (televisions, toys, pets and pet products, sports equipment, admissions); * EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);

12. * FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks) * HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture) * APPAREL (men's shirts and sweaters, women's dresses, jewelry) * TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance) * MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services) * RECREATION (televisions, toys, pets and pet products, sports equipment, admissions); * EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories); * OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).

13. CPI= Market basket/by base year average Inflation= change in CPI from previous year Inflation- 1951

14. In times of prolonged inflation, who suffers more? Creditors or debtors? Why?

15. Labor force- all persons 16 and older who are either employed or actively seeking employment. 154,000,000. Excludes military and incarcerated Unemployed- all persons seeking work. worked <1hr., family business <15 hrs

16. Unemployed / labor force

17. Frictional- workers between jobs

18. Structural- fundamental change in tastes or how business is done. Outsourcing

19. Frictional- workers between jobs Structural- fundamental change in tastes or how business is done. Outsourcing Technological- machines replace workers

20. Frictional- workers between jobs Structural- fundamental change in tastes or how business is done. Outsourcing Technological- machines replace workers Cyclical- swings in the business cycle

21. Frictional- workers between jobs Structural- fundamental change in tastes or how business is done. Outsourcing Technological- machines replace workers Cyclical- swings in the business cycle Seasonal- centers around weather