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Questions and Answers
What percentage of the labor force was fully employed during the Great Depression in the 1930s?
What percentage of the labor force was fully employed during the Great Depression in the 1930s?
Who were among the most affected during the Great Depression?
Who were among the most affected during the Great Depression?
What was a common work condition for those who kept their jobs during the Great Depression?
What was a common work condition for those who kept their jobs during the Great Depression?
In which decade did the Great Depression occur?
In which decade did the Great Depression occur?
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What is a significant outcome of unemployment highlighted in the content?
What is a significant outcome of unemployment highlighted in the content?
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What distinguishes the Chained CPI from the traditional CPI?
What distinguishes the Chained CPI from the traditional CPI?
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In what year was the Chained CPI introduced by the BLS?
In what year was the Chained CPI introduced by the BLS?
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Why is the Chained CPI considered an improvement over the traditional CPI?
Why is the Chained CPI considered an improvement over the traditional CPI?
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What aspect of the Chained CPI differs from the GDP deflator?
What aspect of the Chained CPI differs from the GDP deflator?
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What statistical method is used to determine inflation using the CPI method?
What statistical method is used to determine inflation using the CPI method?
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What is one of the consequences of inflation?
What is one of the consequences of inflation?
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How is purchasing power defined?
How is purchasing power defined?
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Which statement about inflation is true?
Which statement about inflation is true?
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Which outcome does inflation not directly cause?
Which outcome does inflation not directly cause?
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What effect does inflation have on consumer behavior?
What effect does inflation have on consumer behavior?
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What happens to the purchasing power of individuals on a fixed income when prices rise?
What happens to the purchasing power of individuals on a fixed income when prices rise?
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Which statement best describes the relationship between fixed income and rising prices?
Which statement best describes the relationship between fixed income and rising prices?
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What is the effect of inflation on those with fixed incomes?
What is the effect of inflation on those with fixed incomes?
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How does a decrease in real income impact individuals on a fixed income?
How does a decrease in real income impact individuals on a fixed income?
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Which of the following best defines purchasing power?
Which of the following best defines purchasing power?
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What does per-capita output growth measure?
What does per-capita output growth measure?
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Which formula correctly represents per-capita output?
Which formula correctly represents per-capita output?
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What is the significance of measuring per-capita output growth?
What is the significance of measuring per-capita output growth?
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If per-capita output growth is increasing, what can be inferred about the economy?
If per-capita output growth is increasing, what can be inferred about the economy?
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Which factor might negatively impact per-capita output growth?
Which factor might negatively impact per-capita output growth?
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What is the minimum age for a person to be considered employed according to the definition provided?
What is the minimum age for a person to be considered employed according to the definition provided?
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How many hours per week must a person work to be considered employed?
How many hours per week must a person work to be considered employed?
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In which of the following situations is a person considered employed?
In which of the following situations is a person considered employed?
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Which of the following best defines the term 'employed' in this context?
Which of the following best defines the term 'employed' in this context?
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Which condition is NOT part of being classified as employed?
Which condition is NOT part of being classified as employed?
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Study Notes
Unemployment
- Unemployment is a key macroeconomic measure, indicating the economy's health
- It helps determine government policy on spending and taxes (fiscal policy) and interest rates (monetary policy)
- Measurement of unemployment:
- Employed: any person 16 or older working for pay (at least 1 hour per week) for someone else or in own business
- Employed: working without pay in a family enterprise for 15+ hours per week
- Employed: having a job but temporarily absent (with or without pay) due to illness, bad weather, vacation, labor disputes, or personal reasons
- Unemployed: not employed, fall into two categories:
- Not in the labor force: not looking for work (lost hope of finding or doesn't want a job)
- Unemployed: actively looking for work but cannot find a job
- Unemployment Rate: (Unemployed / Labor Force) * 100%
- Labor Force Participation Rate = (Labor Force / Population) * 100%
Inflation and Deflation
- Inflation: a rise in the general price level of goods and services
- Deflation: a fall in the general price level of goods and services
- Two measures of inflation:
- GDP deflator
- Consumer Price Index (CPI)
- CPI: measures the average price level of a basket of goods and services consumed by urban households over time.
- Used to estimate inflation/deflation rate
- Influences monetary policy decisions of Federal Reserve
Long-Run Growth
- Output growth: the rate of output of the entire economy grows
- Per capita output growth: the rate of output per person in the economy (ratio of total output/total population)
- Output per worker (labor productivity): output/number of workers
- Factors determining output growth:
- Increase in number of workers (quality)
- Increase in capital
- Technological improvements
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Description
This quiz explores key concepts related to unemployment as a macroeconomic measure, its impact on fiscal and monetary policy, and how it is calculated. Test your understanding of employment classifications, unemployment rates, and labor force participation.
