A collection of goods and services from which prices are measured to compute inflation
(From the reading): The most commonly used price index is the CPI. Some economists prefer the ________ as it includes a far larger market basket than the CPI – nearly all goods and services available in the economy.
He wrote The General Theory of Employment, Interest, and Money in 1936. His economic ideas changed the way governments managed their economies.
It includes all working people plus all people over 16 who are actively looking for jobs.
A stay at home mom or a retired person would both be an example of this.
The likely effect of an increase in unemployment compensation.
Unemployment which is attributable to a decline in the economy’s total production
John has been replaced at work by a machine. John is the victim of what kind of unemployment?
“Full employment” allows for these two types of unemployment to exist.
National Income may be found by determining the sum of all types of spending. What are the variables in this sum?
The minimum wage in 1994 was $4.25. The CPI in 1994 was 148.2. Compute the real minimum wage in 1994. Just showing your math is fine….
In May many new college graduates enter the workforce. What should happen to the unemployment rate every May ?
Assume that the unemployment begins the summer at 8%. During July and August one hundred thousand people enter the workforce while only ninety two thousand jobs are created. What happens to the unemployment rate?
Assume that the current inflation rate is 3% when you take out a loan for which you must pay 7% interest. What is the real rate of interest?
The type of market in which households sell labor and other factors of production to businesses.
This is calculated by pricing several hundred items in a market basket and is used to compare real price levels.
A good used for resale or for the use in producing another good (Hint: NOT counted in the GDP)