Econ 2030 Recitation #9

On Friday morning, 03 November 2017, Nick was very busy and only took a brief look at the October 2017 Employment Situation Report for the United States. While driving home that afternoon, he recalled the report and thought, "Hmmm...that's strange." All he could remember about the report was three pieces of information. First, the unemployment rate in October fell to 4.1 percent. Second, the number of people classified as employed decreased from its September level. Third, the civilian noninstitutional population increased from its September level.

1)Nick concluded with certainty that the number of people classified as unemployed in October 2017 _____ its September 2017 level.

2)Nick concluded with certainty that the number of people in the civilian labor force in October 2017 _____ its September 2017 level.

3) Nick concluded with certainty that the number of people classified as not in the labor force in October 2017 _____ its September 2017 level.

Suppose 37-year-old Chris is a mother who has become bored with staying at home and raising her two-year-old daughter.  As a result, she has placed her child in day care, is available to begin a job immediately, and has been actively seeking employment for the last seven weeks.  In this situation Chris would be considered _____ unemployed.

1. frictionally
2. structurally
3. cyclically
4. seasonally

Suppose Leslie lost her job when the typewriter factory closed down nine years ago and has been unemployed ever since.  Leslie would be considered _____ unemployed.

1. frictionally
2. structurally
3. cyclically
4. seasonally

Suppose Mark lost his job as a sales executive due to a recession.  He sends his résumé to thirty companies per week on average and is available to begin a job immediately, if offered one.  In this situation, Mark would be considered _____ unemployed.

1. frictionally
2. structurally
3. cyclically
4. seasonally

Suppose Brian lost his job as a tennis instructor when his hotel on Long Island, New York closed for the winter.  In this situation, Brian would be considered _____ unemployed.

1. frictionally
2. structurally
3. cyclically
4. seasonally

Answer true or false to the following statement.  An economy that is operating at full employment is experiencing a zero percent rate of unemployment.

1. True
2. False

Suppose a country's economy is experiencing a recession.  This means that there is a _____ in the labor market.

1. surplus
2. shortage

The month-to-month percent change in the total CPI is the most publicized measure of...

1. inflation
2. the inflation rate
3. the economic growth rate
4. the business cycle
5. the unemployment rate

A continual increase in the aggregate price level is...

1. inflation
2. the inflation rate
3. the economic growth rate
4. the business cycle 
5. indexing
6. deflating

The following data are the seasonally adjusted percent changes from the preceding month for the United States.

	July 2024	August 2024
Total CPI	+0.2	+0.2
Core CPI	+0.2	+0.3

1. The inflation rate in August 2024, as measured by the percent change in total CPI, was higher than/lower than/the same as it was in July 2024.

2. The inflation rate in August 2024, as measured by the percent change in core CPI, was higher than/lower than/the same as it was in July 2024.

3. The aggregate price level in August 2024, as measured by the total CPI, was higher than/lower than/the same as it was in July 2024.

4. The aggregate price level in August 2024, as measured by the core CPI, was higher than/lower than/the same as it was in July 2024.