1. Unemployment & Inflation Exam Review

2. Hasib is on temporary layoff. Is he considered employed? _____. The adult population = ___ + ____ + _______. And the labor force = ____ + _____.

3. 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.)

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

5. 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.

6. Three types of unemployment Frictional Structural Cyclical Which of the 3 is a deviation from the natural rate of unemployment??

7. 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? ________________________

8. Interest rates & inflation i = nominal (interest) rate r = real (interest )rate π = inflation i – π = r Example: Inflation = 3% Nominal interest rate = 7% Real interest rate = ?