Types of Unemployment
I just graduated and I am currently sending out resumes for my first marketing job. What type of unemployment am I?
Frictional Unemployment
Write the formula used to calculate the Labor Force
Employed + Unemployed
What do we call the fixed set of consumer goods and services used to measure prices?
The Market Basket
A town has 90 employed people and 10 unemployed people. What is the official Unemployment Rate?
10%
I lost my job on the assembly line because the factory bought a new automated robotic arm. What type of unemployment am I?
Structural Unemployment
Write the formula for the Unemployment Rate
(Unemployed / Labor Force) x 100
What does PPI stand for, and what does it measure?
Producer Price Index, measuring the cost of goods and services needed for production
The base year market basket cost $50. Today, that exact same basket costs $65. Calculate today's CPI.
130
I lost my job at the dealership because the economy crashed and nobody is buying cars right now. What type of unemployment am I?
Cyclical Unemployment
Write the formula for the Labor Force Participation Rate
(Labor Force / Population) x 100
If the CPI for a specific year is exactly 100, what does that automatically tell you about that year?
Base Year
Last year the CPI was 120. This year the CPI is 132. Calculate the Inflation Rate.
10%
I lost my job 6 months ago. I looked for a while, but gave up 4 weeks ago and stopped checking job boards. What is my official labor status?
Not in the Labor Force
Write the official formula for the Natural Rate of Unemployment
((Frictional + Structural) / Labor Force) x 100
Write the formula to calculate the CPI for the current year.
(Cost of basket in Current Year / Cost of basket in Base Year) x 100.
A town has 100 employed people, 20 unemployed people, and 10 discouraged workers. Calculate the Labor Force.
120 people
When an economy is expanding, this specific type of unemployment is currently low.
Cyclical Unemployment
Write the formula to find Cyclical Unemployment if you are given the Actual and Natural Unemployment rate
Actual Unemployment Rate - Natural Unemployment Rate
Write the formula to calculate the Inflation Rate between two years
((New CPI - Old CPI) / Old CPI) x 100%
A country has a Working-Age Population of 200 million. 120 million are employed. 30 million are unemployed. Calculate the Labor Force Participation Rate.
75%