Unemployment
Consumer Price Index
Inflation
100
What is Unemployment Rate ?
The unemployment rate represents number of unemployed people as a percentage of the labor force where labor force is the sum of the employed and unemployed.
100
This is constructed by tracking the retail price of a representative shopping basket of approximately 600 goods and services from an average household's expenditure
What is Consumer Price Index
100
Inflation refers to___.
increase in price level for goods and services.
200
Which of the following types of unemployment occurs due to changes in the economy, such as technological advancements or changes in demand for certain goods?
Structural Unemployment
200
Rising consumer price index indicates that__.
prices of consumer goods and services are rising.
200
Deflation refers to _.
Decline in price level of goods and services.
300
If total population is 200 out of which 180 are in the labor force with 120 currently employed, then unemployment rate is__.
unemployment rate is 33.33%
300
What is the main difference between Consumer Price index (CPI) and Producer Price Index (PPI)
The CPI measure the price consumers pay to buy goods (usually from the retailers), whereas the PPI measure the prices producers receive for their output (usually from wholesalers).
300
According to the Philips Curve what kind of relationship exists between inflation and unemployment rate?
Inverse relationship
400
If total population is 200 out of which 125 are currently employed and 55 are unemployed, then labor force participation rate is___.
LFPR is 90%
400
If cost of the "consumer basket" in the base year is $100 and cost of the same basket is $120 next year, then we can estimate the year-to-year inflation rate to be_.
20%
400
Stagflation refers to __.
Stagflation is an economic situation characterized by slow economic growth coupled with rising inflation.
500
If a country total population is 100 million out of which minors, retirees, full-time homemakers, institutionalized persons, full time students and discouraged workers count for 25 million in total. What is the labor force participation rate?
LFPR = 75%
500
Consumer Price index and GDP deflator both can be used to measure inflation rate. What is a major difference between these two measures of inflation?
While CPI measure of inflation tracks price changes in all goods and services used by consumers, GDP deflator only tracks price changes of goods that are produced domestically and ignores the imported goods.
500
According to the data given below, what is the CPI and inflation rate for the year 2020?
CPI for year 2020 is 115.22 and inflation rate is 15.22%